Yes Bank share price jumps 9% after $1.2 billion fund raising plan report

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Published: August 23, 2019 12:58:23 PM

Shares of India's major private sector lender Yes Bank jumped in trade on Friday, after a media report said the bank is eyeing a $1.2 billion in additional fund raising.

Yes Bank, Yes Bank Stocks, Yes Bank M-Cap, Investors, Reuters, यस बैंक, यस बैंक का शेयर, management issue in yes bank, exposure, financial fraudYes Bank’s board of directors are likely to meet soon for mulling further fundraising, CNBC TV18 reported citing sources.

Shares of India’s major private sector lender Yes Bank jumped in trade on Friday, after a media report said the bank is eyeing a $1.2 billion in additional fund raising. Yes Bank shares gained more than 8.7% to hit the day’s high at Rs 61.25 on BSE. Yes Bank’s board of directors are likely to meet soon for mulling further fundraising, CNBC TV18 reported citing sources. According to the report, the bank’s board is set to discuss raising of an additional $1.2 billion. The equity infusion will be subject to shareholder approval.The development comes after Yes Bank raised Rs 1,930 crore through Qualified Institutions Placement (QIP) route last week. It allotted 23.1 crores equity shares to eligible qualified institutional buyers at Rs 83.55 per share.

Also read: Share Market Today Live: Sensex recovers, Nifty near 10,800; Yes Bank, VEDL top gainers

The recovery in the stock comes after the shares plunged to fresh all-time lows yesterday. Yes Bank shares had extended decline on Thursday, even as investors were worried about the valuation of fraud-hit CG Power in which the bank holds more than 12% stake. Yes Bank shares had closed at a fresh all-time low of Rs 56.30. The recent plunge in Yes Bank shares comes after Gautam Thapar-controlled CG Power informed that it found some unrelated suspicious transactions while going through normal financing assessment. “The total liabilities of company and the group may have been potentially understated by about Rs 1,053.54 crore and Rs 1,608.17 crore, respectively, as on 31 March 2018,” CG Power said in its exchange filing on Tuesday. As at the end of June 2019, Yes Bank had a 12.8% stake in CG Power.

Among other irregularities, CG Power said that certain assets of the firm were purportedly provided as collateral without due authority; and the Company was made a co-borrower and/or guarantor for enabling ostensibly unrelated third parties to obtain loans without due authorisation. “The moneys so obtained were immediately and without due authorisation routed out of the Company, either by itself or from its subsidiaries or ostensibly unrelated parties to certain related parties,” CG Power had said.

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