For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Yes Bank Shares Touch 8-Year Low As It Seeks Approval To Increase Share Capital

By Staff
|

On Thursday, shares of Yes Bank slumped by almost 5.5 percent to Rs 50.75 apiece on NSE, its lowest in 8 years. It was one of the worst performers on Sensex and Nifty for the day.

It is the second consecutive trading day of losses for the private bank that awaits RBI approval to raise capital.

Yes Bank Shares Touch 8-Year Low As It Seeks Approval To Increase Share Capital
 

In a stock exchange filing on Wednesday, the bank said, "Pursuant to the approval from the Board of Directors, the Bank has applied to the Reserve Bank of India requesting approval for increase in the Bank's Authorised Share Capital. Subsequent to this approval, the Bank will seek approval from shareholders."

"The Bank has received strong interest from multiple foreign as well as domestic private equity & strategic investors for this capital raise and remains firmly on course to raising growth capital subject to the necessary approvals," the filing further said.

Meanwhile, concerns remain on the bank's exposure to Altico Capital India, the NBFC that defaulted on two interest payments in recent week citing deficit liquidity.

Further, a Financial Express report quoting unnamed people said that co-founder Rana Kapoor will soon seek approval from the RBI to sell his stake in Yes Bank to Canadian asset manager Brookfield.

A week ago, Rana Kapoor-owned Morgan Credits Pvt Ltd (MCPL), which forms a part of the Yes Bank's promoter group, sold 2.3 percent stake in the bank to prepay a portion of its outstanding Non-Convertible Debentures (NCDs).

With the stake sale, co-founder Rana Kapoor's family's ownership in Yes Bank came down to 7.4 percent.

Regarding the stake sale, the private lender clarified in an exchange filing that the "sale was effected purely to deleverage the debt of this entity (MPCL)" and "would like to state that the financial position of the Bank is sound & stable, its operating performance continues to be robust and its growth plans stay firmly on track."

Read more about: yes bank rana kapoor
Story first published: Thursday, September 26, 2019, 13:47 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more