Yes Bank sets 55% discount for $2 billion share offering

The Mumbai-based lender plans to sell the shares at 12 rupees to 13 rupees apiece, a filing showed Friday. That’s a discount of as much as 55% to Thursday’s close. The stock fell 5.1% to 25.30 rupees at 12:14 p.m. local time.

Yes Bank Ltd. set a large discount in the price range for its $2 billion public offering scheduled for next week.

Yes Bank, which was bailed out earlier this year, is the latest Indian lender to announce capital raising plans to boost buffers as the pandemic threatens to increase bad loans (Bloomberg file photo)

The Mumbai-based lender plans to sell the shares at 12 rupees to 13 rupees apiece, a filing showed Friday. That’s a discount of as much as 55% to Thursday’s close. The stock fell 5.1% to 25.30 rupees at 12:14 p.m. local time.

Yes Bank, which was bailed out earlier this year, is the latest Indian lender to announce capital raising plans to boost buffers as the pandemic threatens to increase bad loans. Kotak Mahindra Bank Ltd. raised almost $1 billion in late May selling shares at a discount of just over 1%.

Read more on Yes Bank’s share sale plans

A minimum bid lot will be one thousand equity shares, Yes Bank said in the filing. The equity issue is due from July 15 to July 17.