LIC acquires close to 5% stake in Yes Bank

By: |
August 6, 2020 10:27 PM

Earlier this week, Moody's Investors Service upgraded Yes Bank's long-term foreign currency issuer rating by a notch to ''B3'' from ''Caa1'' after a Rs 15,000-crore capital raising. Despite the upgrade, Yes Bank still remains under non-investment grade.

The period of acquisition is between September 21, 2017, and July 31, 2020

Yes Bank on Thursday said LIC has acquired close to 5 per cent shareholding in the bank by purchasing shares from the open market. With the fresh acquisition, the hold of LIC has increased from 0.75 per cent to 4.98 per cent, Yes Bank said in a regulatory filing.

LIC purchased 105.98 crore shares, reflecting 4.23 per cent stake, of the bank from the open market, the filing said.

Prior to this, LIC had 0.75 per cent stake in Yes Bank though 19 crore shares held. In all, it said, LIC holding in the bank increased to 4.98 per cent through 125 crore shares held.

The period of acquisition is between September 21, 2017, and July 31, 2020, it said.

Earlier this week, Moody’s Investors Service upgraded Yes Bank’s long-term foreign currency issuer rating by a notch to ”B3” from ”Caa1” after a Rs 15,000-crore capital raising. Despite the upgrade, Yes Bank still remains under non-investment grade.

Obligations rated ‘B’ are considered speculative and are subject to high credit risk, while those rated ‘Caa’ are judged to be speculative of poor standing and are subject to very high credit risk.

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