India's Yes Bank slashes public offering share price by 55%

It is the latest Indian lender to raise capital to boost buffers against bad loans.

Yes Bank has set a 55% discount in the price range for its $2b public offering scheduled for next week, reports Bloomberg.

The Mumbai-based lender now plans to sell its shares at 12 rupees to 13 rupees apiece, a filing revealed.

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

Yes Bank has received commitments for about half the $2b it is seeking from anchor investors, including Tilden Park Capital, state insurer Life Insurance Corp. and the State Bank of India and its subsidiaries, according to people familiar with the matter, who asked not to be identified as the matter is confidential.

Here’s more from Bloomberg.