YES Bank will visit the capital market with the IPO for seven crore new shares of Rs 10 each at a price to be decided through the book building process, managing director Rana Kapoor said in Mumbai on Wednesday.
The bank needs about Rs 500 crore (Rs 5 billion) in the form of additional capital -- equity and debt -- to grow the business in next two years and the proceeds of equity offering would help to improve single borrower eligibility, he said adding, the funds would also be used to create infrastructure for retail and business banking.
Post-IPO, the shareholding of promoters would reduce from 52 per cent to about 40 per cent, he said. The bank has appointed DSP Merrill Lynch and Enam Financial as book running lead managers for the offer, Kapoor added.
The bank is also likely to float tier-II capital issue of bonds worth Rs 100 crore (Rs 1 billion) in the first quarter of the next fiscal.