YES Bank shares in focus after board clears plan to raise Rs 16,000 crore in equity and debt
ADVERTISEMENT In a regulatory filing, YES Bank said the equity component would be raised using various permissible instruments, with total dilution capped at 10%. The board also approved raising debt capital through instruments denominated in Indian or foreign currency, aggregating to Rs 8,500 crore.
Also Read: MRF snatches India's highest-priced stock crown back from Elcid Investments
As part of its strategic partnership with Japan's Sumitomo Mitsui Banking Corporation (SMBC), YES Bank will amend its Articles of Association to enable SMBC to infuse fresh equity and increase its stake. On May 9, SMBC signed a definitive agreement to acquire a 20% stake in YES Bank for Rs 13,483 crore via a secondary market deal.
Under the agreement, SMBC will receive pro-rata pre-emptive rights to participate in future equity issuances to maintain its stake and will be entitled to nominate two non-executive, non-independent directors to YES Bank's board. State Bank of India (SBI), a key shareholder, will retain the right to appoint one nominee director.
YES Bank last raised Rs 15,000 crore in July 2020 through a follow-on public offer. In March 2022, it secured Rs 8,887 crore from Carlyle and Advent International via a preferential issue, with both investors acquiring a 9.99% stake each.
ADVERTISEMENT As of March 2025, the bank reported a Common Equity Tier 1 (CET1) ratio of 13.5% and an overall capital adequacy ratio of 15.6%.Also Read: Looking for reliable dividends? These 10 stocks stayed consistent through FY22–FY24
ADVERTISEMENT According to Trendlyne, the average target price for YES Bank is Rs 16, indicating a downside of around 21% from current levels. Among the 12 analysts tracking the stock, the consensus rating is 'Sell'.On Tuesday, YES Bank shares closed at Rs 20.85 on the BSE, down 10.4%, while the benchmark Sensex fell 0.78%. The stock has surged 28% in the past three months but is down 11% over the past year. YES Bank's market capitalisation currently stands at Rs 65,387 crore.
ADVERTISEMENT Also Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list
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