Yes Bank has issued a request for proposal (RFP) demanding advisors for fundraising to raise another Rs 5000 crore. From some information this private lender is trying to talk with three investment banks. The RPF was done at April to raise Rs 5000 crore and up to Rs 15000 crore in equity. Yes bank has talked with Axis Capital, Bank of America and Citi.
Yes Bank boards has increased fundraising limit to Rs 15,000 crore from earlier Rs 10,000 crore. Advisors will appoint over the next few weeks. There is a resolution to raise up to Rs 15000 crore. This will depend market conditions and feedback from advisors. From some information the amount will raise more than 15000 crore.
From other sources fund will come from markets via a rights issue or a qualified institutional placement (QIP). The reason behind is that to bring new institutional investors into the bank. In March State Bank of India (SBI) invested a combined Rs 10,000 crore to keep the troubled lender floating. There is investment of Rs 6050 crore by SBI. Other investors are ICICI Bank, HDFC, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank and Federal Bank.