Yes Bank stock continues its losing streak and in Tuesday's session was dragged lower by 5% to Rs. 53.4 on the BSE. As per a leading business daily report, ace investor Rakesh Jhunjhunwala may withdraw his investment plan worth $25 million in the private sector lender as there remains uncertainty with respect to the bank's capital raising plans.
Further the report said that the proprietor of Rare Enterprises planned to invest a sum of $25 million in the bank via his wife's family office. On December 10, Jhunjhunwala is likely to come up with a formal letter concerning the investment, added the report.
"The logic behind not subscribing to Yes Bank's preferential allotment by Jhunjhunwala is that it is higher than the prevailing market price. There is also a lock-in period," a source told the leading daily.
On December 9, shares of Yes Bank ended at Rs. 56.2 on the BSE, whereas the price for preferential offer is Rs. 78.
Yes Bank on Monday shed its gains after a Bloomberg report suggested that the lender is likely to decline a $1.2 billion capital raising plan from Canada-based Braich and Hong Kong-based SPGP Holdings.
The board of the bank will likely discuss the $2 billion capital raising plan at its meeting today.
Shares of Yes Bank last quoted at Rs. 55.10, down 1.96% or Rs. 1.1 on the BSE.