After aborting its USD 1-billion QIP plan midway last month, private sector lender Yes Bank today hinted at changing its advisers for a fresh capital-raising bid which will be done by June next year.
“What we would like to do better in the future (is) we would like to mobilise meaningful anchors who could anchor a deal,” managing director and chief executive Rana Kapoor told reporters here.
When asked if he was hinting at changing the investment bankers, he said it was for the concerned committee of the board to look into it, but added, “We will be looking at a set of banks and legal funds where we have the highest confidence.” It can be noted that the bank had to scrap its qualified institutional placement (QIP) issue on September 8 within 24 hours of launching it.
Goldman Sachs, Motilal Oswal and CLSA were lead global coordinators and book-running lead managers. Officially, the bank blamed market volatility for cancelling the issue but there was a lot of speculation about other factors.
Some reports blamed a procedural issue which should have been avoided at the advisers’ end, while some also questioned if the bank was extra ambitious.
“We have reasons to believe that the new deal, as and when it happens, will have some learnings from the past,” Kapoor said.
He said the bank has successfully closed two rounds of capital-raising in the past, including the 2014 issue when it had an orderbook of five times of the plan and exuded confidence of doing another successful issue after the “setback” last time.
He pointed out factors like headroom to increase foreign holding by over 31 per cent, research coverage by analysts, buoyancy in the scrip and inclusion in the MSCI index with a weight of 1.8 per cent as key points which will drive the investor interest.
The bank’s core tier-I capital adequacy stood at 10.1 per cent including profits and excluding prorated dividend , which is above regulatory requirements but among the lower ones within peers.
The bank scrip closed 1.31 per cent up at Rs 1,308.80 a piece on BSE against 0.52 per cent rise in the benchmark. PTI AA KRK .