Yes Bank sets a large discount for $2 billion share offering

Square

Yes Bank is the latest Indian lender to announce capital raising plans to boost buffers as the pandemic threatens to increase bad loans and has set a large discount in the price range for its $2 billion public offerings scheduled for next week.

The Mumbai-based lender plans to sell the shares at 12 rupees to 13 rupees apiece, a filing showed Friday. That’s a discount of as much as 55% to Thursday’s close. The stock fell 5.1% to 25.30 rupees at 12:14 p.m. local time.

Yes Bank, which was bailed out earlier this year, is the latest Indian lender to announce a capital raising plans to boost buffers as the pandemic threatens to increase bad loans. Kotak Mahindra Bank Ltd. raised almost $1 billion in late May selling shares at a discount of just over 1%.