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YES Bank tumbles 11% ahead of crucial board meet

Media reports suggest that the Board will reject the offers from SPGP Holdings and Erwin Singh Braich.

ETMarkets.com|
Updated: Dec 10, 2019, 03.44 PM IST
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AP
YES-Bank---AP-3
YES Bank is raising $2 billion by way of preferential allotment of shares.
NEW DELHI: Shares of YES Bank traded 11 per cent lower in Tuesday's session, ahead of a crucial board meeting to decide on investment offers that the lender has received.

YES Bank’s Board of Directors will meet later in the day to finalise and approve the details of the preferential allotment and convene an extraordinary general meeting subsequently, to obtain the approval of the shareholders for raising capital.

YES Bank is raising $2 billion by way of preferential allotment of shares. A number of foreign and domestic investors have showed interest in investing in the company, which includes Capital International, a part of the $1.87-trillion Capital Group based in the US, who has committed to invest at least $120 million in the lender.

Among others are Discovery Capital ($50 million), Ward Ferry ($30 million), SPGP Holdings/Erwin Singh Braich ($1,200 million), Rakesh Jhunjhunwala ($25 million) and Aditya Birla Family Office ($25 million).

Media reports suggest that the Board will reject the offers from SPGP Holdings and Erwin Singh Braich. Rakesh Jhunjhunwala may also be out of contention, the reports indicated.

Offers by Canada based Braich and SPGP Holdings constitute 60 per cent of $2 billion that the bank is seeking to bump up its liquidity. It may have to find alternatives to fill that void.

Shares of YES Bank closed at Rs 50.55, down 10.05 per cent on BSE.
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