YES Bank share emerges as top Sensex loser; falls to fresh 6 year low

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Updated: September 26, 2019 4:59:11 PM

YES Bank shares hit a six-year low as they plunged 4.93 percent to Rs 51.05 on BSE.

On Thursday, Morgan Credits (MCPL), the promoter firm of YES Bank, sold Rs 337 crore worth of shares of the lender in a bulk deal.

YES Bank share on Thursday emerged as top Sensex loser as it waited for the Reserve Bank of India (RBI) approval for increasing the bank’s authorised share capital. The shares hit a six-year low as they plunged 4.93 percent to Rs 51.05 on BSE. “The bank has applied to the Reserve Bank of India, requesting approval for an increase in the bank’s authorised share capital. Subsequent to this approval, the bank will seek approval from shareholders,” Yes Bank said said in an exchange filing. The bank plans to raise Rs 800 crore from the market. “The bank has received strong interest from multiple foreign as well as domestic private equity and strategic investors for this capital raise and remains firmly on course to raising growth capital subject to the necessary approvals,” the filing also said.

On Thursday, Morgan Credits (MCPL), the promoter firm of YES Bank, sold Rs 337 crore worth of shares of the lender in a bulk deal. The shares were sold to prepay a certain part of its outstanding dues to Reliance Nippon Life AMC (RNam). The sale of shares intensified the selling pressure on YES Bank.

Also read: SEBI Chairman’s IPO push: Fundraising activity needs to pick up, says Ajay Tyagi

Rana Kapoor, who holds 4.31 per cent stake in YES Bank in his individual capacity, said in a statement: “With the sole intention of reducing debt of the promoter holding company MCPL, owned by my three daughters, it was decided to bring down our family ownership in YES Bank to 7.4 per cent.” Meanwhile, market benchmark BSE Sensex zoomed 396 points on Thursday, driven by gains in index heavyweights ICICI Bank, RIL, L&T and Maruti as September series derivatives expired amid positive cues from global markets.

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