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YES Bank slips 7% even as Capital Int'l commits to invest $120 million

YES bank plans to raise $2 billion on a preferential allotment basis from eight investors.

Updated: Dec 03, 2019, 03.54 PM IST
Shares of YES Bank continued their downward journey on Tuesday despite reports suggesting that Capital International, a part of the $1.87-trillion Capital Group based in the US, has committed to invest at least $120 million in the lender.

The fund is one of eight investors that expressed interest in investing in YES Bank and is awaiting regulatory approvals in the US.

In a notice to the stock exchanges on Friday, YES Bank said a top tier US-based fund house was one of the three institutional investors that committed a total of $200 million to subscribe to shares of the bank.

The bank plans to raise $2 billion on a preferential allotment basis from a total of eight investors. Besides three institutional investors, there are five family offices which have committed to invest in the bank including Canadian billionaire Erwin Singh Braich’s SPGP Holdings, which has expressed its willingness to invest $1.2 billion or 60 per cent of the total $2 billion commitments received by the bank.

It has dipped 66 per cent in the ongoing calendar year against 13 per cent rise in Sensex. Because of the fall, the BSE has decided to replace the stock from the 30-share benchmark from December 23 onwards.

The shares of the lender closed 7.10 per cent lower at Rs 59.50 on BSE.
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