Shares of India’s major private sector lender Yes Bank surged on Tuesday after media reports indicated that four PE firms have shown interest to pick up a stake in the bank. Yes Bank shares jumped more than 10.8% to hit the day’s high at Rs 103.35. “US-based private equity investor made an offer to acquire worth $850 million stake in the bank, the term sheet offer for which was made over the weekend,” The Economic Times said in a report, citing sources as saying. The announcement regarding the stake buy is likely to come after thre lender Q1 earnings scheduled to be reported tomorrow, added the report further. The publication reported that the consortium leader may pick a 10% stake in the bank, while the rest of the three PE investors may together pick another 10% stake in Yes Bank.
Meanwhile, Yes Bank has termed the development as speculation.”The Bank is not aware of the source, which resulted in the abovementioned news item published in “economictimes.indiatimes.com” dated July 15, 2019 and as a matter of policy, the Bank would not like to comment on such speculation,” Yes Bank said in the statement to the exchanges.
The statment added that the Bank in ordinary course of its business continues to explore various means of raising capital/ funds through issuance of securities to diverse set of investors, in order to meet its business/ regulatory requirements subject to compliance with prescribed procedures and receipt of statutory I regulatory approvals. “We shall keep the stock exchanges informed about the disclosures required to be made under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015,” added the firm in its statement.
Yes Bank is likely to report subdued earnings for the quarter ended June 30 on rising provisions amid deteriorating asset quality. The lender is scheduled to announce financial results tomorrow. Kotak Institutional Equities estimates a loss for the second straight quarter. The research firm has projected a loss of Rs 578.60 crore for Yes Bank against a net profit of Rs 1,260.40 crore in the corresponding quarter last year. In the previous quarter, Yes Bank reported a loss of Rs 1,506.60 crore.