YES Bank’s board of directors has approved a proposal to seek final shareholder approval for increasing the investment limit for foreign portfolio investors (FPIs) in the paid-up share capital of the bank up to 74 per cent. At present, the cap is 49 per cent. The private sector lender referred to the Union Budget announcement that distinction between different types of foreign investments, especially between FPIs and foreign direct investments will be done away with and replaced with a composite cap. The amendments to applicable laws and the increased applicable cap for investment by FPIs/FIIs are still awaited.
The move to hike foreign investors investment limit comes in the wake of the bank’s announcement on Wednesday that it will raise funds by way of issuance of equity capital up to $1 billion in one or more tranches on such terms and conditions as it may deem fit.
In addition, the board on Thursday also approved sponsored Level I Depository Receipt (DR) issuance programme of up to 1 crore DRs, with conversion of two shares to one DR.