June 4, 2025, Mumbai – Shares of YES Bank gained early on Wednesday after the bank’s board approved a plan to raise up to ₹16,000 crore through a mix of equity and debt instruments to support business growth. livemint.combusinesstoday.in
Fundraising Structure
- Equity Component (₹7,500 crore)
The board has sanctioned issuance of eligible equity securities up to ₹7,500 crore, ensuring the total equity dilution does not exceed 10%. This cap includes any conversion of convertible debt instruments already approved. livemint.combusinesstoday.in - Debt Component (₹8,500 crore)
In addition to equity, YES Bank will raise ₹8,500 crore by issuing debt securities in Indian or foreign currency. The debt issuance may occur in one or more tranches, both domestically and internationally, also observing the 10% dilution limit where applicable (for convertible debt). livemint.combusinesstoday.in
Both equity and debt proceeds are intended to bolster the bank’s capital base, support lending growth, and fund strategic initiatives. These fundraising decisions are subject to shareholder and regulatory approvals. m.economictimes.combusinesstoday.in
Stock Performance
On Wednesday morning, YES Bank shares rose as much as 1.87% to trade at ₹21.24 on the Bombay Stock Exchange (BSE). By 9:20 AM IST, the stock was trading 0.96% higher at ₹21.05 per share, reflecting investor optimism following the board’s announcement. Over the past month, the stock has gained 18%, and it is up 29% in the last three months. livemint.comndtvprofit.com
Recent Block Deal
Ahead of the fundraising approval, global private-equity firm Carlyle Group sold a 2.62% stake in YES Bank. Through its affiliate CA Basque Investments, Carlyle offloaded 82 crore shares for approximately ₹1,775 crore in the price range of ₹21.61–21.68 apiece. livemint.com
Strategic Partner Developments
As part of its broader capital strategy, YES Bank is in discussions with Sumitomo Mitsui Banking Corporation (SMBC), which plans to become a strategic investor. To facilitate this, the bank proposed amendments to its Articles of Association in line with the share purchase agreement signed on May 9, 2025, between YES Bank, SMBC, and the State Bank of India (SBI). hdfcsky.comm.economictimes.com
Outlook and Next Steps
YES Bank’s comprehensive ₹16,000 crore fundraising plan underscores its commitment to strengthening the balance sheet and expanding its loan book amid a competitive banking environment. Management has indicated that the capital raise will be executed in multiple tranches, targeting both domestic and international markets to diversify its investor base. Pending shareholder and regulatory nods, the bank expects to complete the issuances in the coming months. businesstoday.inm.economictimes.com
Investors and analysts will continue to monitor YES Bank’s share performance closely, particularly as the bank proceeds with shareholder approvals and detailed issuance plans. Such a sizeable capital raise could further improve the lender’s liquidity position and support its growth trajectory in FY26. m.economictimes.combusinesstoday.in
