India-based private sector lender Yes Bank is planning to raise as much as INR100bn ($1.32bn) through a follow-on public offering (FPO), Livemint has reported citing people familiar with the matter.

The private lender, anticipating the contingencies and opportunities that may arise due to the Covid-19 pandemic, will use the capital to reinforce its balance sheet.

Yes Bank has reached out to market regulator Securities and Exchange Board of India (SEBI) for the receipt of authorisation to execute the FPO through a fast track method.

If approved, the bank can raise nearly INR75-100bn through the fast track FPO process and launch the deal in this month itself.

The regular FPO process could take nearly two to three months to launch, the report added.

According to a source, Yes Bank was initially mulling to raise the targeted capital through multiple fundraising options including a rights issue, QIP and FPO.

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The source said: “The bank has received a lot of interest from high net worth individuals and family offices to participate in fundraising. These investors would not have been able to participate in a QIP offering.

“Given a large number of retail investors in the bank, the management feels that a rights issue would be too time-consuming.”

Yes Bank, which was recently bailed out by State Bank of India (SBI)-led consortium, will most likely file the offer document for the FPO in this week.

Under a rescue plan announced by the Indian government, SBI, HDFC, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank invested INR100bn into Yes Bank.

SBI acquired 48.2% stake in Yes Bank by leading the rescue plan with INR60.5bn capital infusion.