India’s Yes Bank seeks to raise $2 billion in preferential new share issue

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India’s Yes Bank seeks to raise $2 billion in preferential new share issue

Yes Bank Ltd., the Mumbai-based India’s private sector bank founded back in the 2004s by a Rana Kapoor and an Ashok Kapoor, had been exploring an option to raise a whooping upsum of $2 billion in new share issuance to institutional investors alongside wealth manager, as Mumbai-based lender was looking to offset impacts of bad loans in the wake of a crisis-sickened real estate sector alongside shadow banking in India, the world’s third-largest economy by PPP (Purchasing Power Parity) and fifth-largest by nominal GDP.

In point of fact, latest move of the Mumbai-based lender, which was announced late on Friday, the 29th of November 2019, would remark a shattered image of India’s borrowing sector amid multiple interest rate cuts this year, as the fifth-largest private sector lender in the country had been seeking to raise a sum close to its market cap of $2.4 billion by Friday’s (November 1st) market closure.

Nonetheless, according to Yes Bank Ltd.’s Friday’s (November 29th) statement, the lender was looking to sell shares worth of $1.2 billion to a Canadian billionaire investor Erwin Singh Braich, son of a successful businessman Herman Singh Braich who immigrated from the Indian state of Punjab back in the 1927s, alongside a Hong Kong-based SPGP Holdings, which the lender backs.

Besides, the lender had also added in its Friday’s (November 29th) announcement that the talks were expected to close shortly, while SPGP Holdings declined to comment while being asked over the subject-matter.