Efforts to improve the private sector Yes Bank in the crisis are showing improvement. The State Bank of India has already announced an investment of Rs 1760 crore before the bank is gearing up to bring the FPO.
The bank had informed the stock exchange that it would come up with a forward or follow-on public offer (FPO) to raise about Rs 15,000 crore. It is noteworthy that the State Bank of India (SBI) has already made big investments under the revival plan of The Banks and many other giants were also invested by public and private banks.
The State Bank of India has informed the stock exchanges that its Central Board Executive Committee (ECCB) has announced a maximum investment of Rs 1,760 crore in the FPO of Yes Bank.
With a market cap of about 32,000 crore rupees, the bank will soon apply to market regulator SEBI for the FPO.
The board of directors of the Yes Bank will meet on or after July 10, 2020, wherein the share price and other items in the follow-on public offer will be considered and approved, the Yes Bank said.
In March this year, the SBI board approved an investment of Rs 7250 crore in These Banks. Earlier, the RBI had taken control of the bank. SBI chairman says SBI’s total investment in These Banks will not exceed Rs 10,000 crore.
The new board of directors are constantly trying to save the troubled bank. The board has now allowed the bank to raise rs 15,000 crore of capital through further or follow-on public offer (FPO). It will also be a good opportunity for investors to invest in cheaper prices in These Bank.
What is FPO
When a company listed on the stock exchange again issues some shares to its shareholders, it is called follow-on public offer or further public offer (FPO). First, when a company issues shares to the common people to be listed in the stock market, it is called the initial public offer ( IPO).
What will be the benefit to the bank
The capital will increase the bank’s capital adequacy by about 10 per cent. The bank’s market capital is around Rs 32,317 crore. The bank will soon submit the documents required for the FPO with market regulator SEBI and registrar of companies.
Gracia is a senior writer at Get Ignite, where she covers media and advertising and co-hosts the Original Content podcast. Previously, she worked as a tech writer at Adweek, a senior editor at the tech blog VentureBeat, and a local government reporter at the Hollister Free Lance. She attended Stanford University and now lives in Brooklyn.