Yes Bank hits 10-year low despite RBI’s approval to raise capital; share down 13%

Shares of Yes Bank fell nearly 13 percent intraday to hit a 10-year low on September 30 despite receiving approval from RBI to raise more capital.

The stock, so far, plunged more than 89 percent from its all-time high seen in August 2018 to Rs 42.50, the lowest level seen since October 2009. It was quoting at Rs 43.05, down Rs 5.75, or 11.78 percent on the BSE at 1131 hours IST.

The private sector lender informed exchanges that it has received acknowledgment from the Reserve Bank of India (RBI) to go ahead with the proposed increase in its authoriSed share capital.

Now the bank will seek necessary shareholders’ consent and proceed expeditiously with its capital raise.

The bank had applied to the RBI requesting approval to increase its authorised share capital on September 25.

Yes Bank said it has received strong interest from multiple foreign, as well as, domestic private equity and strategic investors for this capital raise.

“We remain firmly on course to raising growth capital subject to the necessary approvals,” it added.

Meanwhile, its promoters have been selling and reducing their stake in the private sector lender. On September 26, Yes Capital (India) Private Ltd (YCPL), part of the promoter group sold 1.8 percent shareholding in the bank. Promoters said the proceeds will be utilized to prepay entire balance outstanding non-convertible debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management (India).

The reduction in total promoter/promoter group ownership in Yes Bank to 13.4 percent in full compliance with RBI’s regulatory levels of 15 percent, it said.

Source : http://tiny.cc/0uvndz

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