Mumbai, February 5, 2025 – YES Bank Limited (NSE: YESBANK, BSE: 532648) has announced an infusion of ₹148.71 crore into its wholly-owned subsidiary, YES Securities (India) Limited (YSIL), through a rights issue. The investment is aimed at strengthening YSIL’s financial position and enhancing its operational capabilities in the broking and investment services sector.
Key Highlights of the Investment:
- Transaction Details: YES Securities has allotted 2,50,85,603 equity shares of ₹10 each at a premium of ₹49.28 per share to YES Bank on February 4, 2025.
- Total Investment Amount: ₹148.71 crore, in cash consideration.
- Post-Investment Shareholding: YES Bank now holds 99.28% of YES Securities' paid-up share capital.
- Purpose of Investment: The capital infusion will allow YSIL to maintain adequate margins with stock exchanges and clearing corporations while enhancing its margin trading facility.
About YES Securities (India) Limited:
YES Securities, a full-scale capital markets intermediary, provides retail and institutional broking services and is registered with SEBI. The firm holds memberships with leading exchanges including NSE, BSE, MCX, and NCDEX. Additionally, YSIL is an investment advisor, research analyst, and depository participant with CDSL and NSDL. It also sponsors and manages Category III Alternative Investment Funds (AIFs).Regulatory Approvals & Compliance:
- SEBI & Exchange Approvals: As a SEBI-registered stockbroker, YSIL secured prior approvals from BSE, NSE, MCX, and NCDEX for this capital infusion.
- RBI Approval: YES Bank sought Reserve Bank of India's (RBI) approval for an infusion of up to ₹150 crore into YSIL, which was granted on December 13, 2024.
Financial Performance of YSIL:
| Financial Year | Turnover (₹ Crore) |
|---|---|
| FY 2023-24 | 271.74 |
| FY 2022-23 | 218.66 |
| FY 2021-22 | 157.49 |
Strategic Rationale & Market Impact
The additional capital will help YSIL expand its services, improve liquidity, and enhance customer experience in capital markets transactions. It aligns with YES Bank’s broader strategy to strengthen its financial services ecosystem by bolstering its subsidiary’s market position.This investment further signals YES Bank’s commitment to long-term growth in India's financial sector and enhances its ability to cater to increasing retail and institutional participation in equity markets.