Yes Bank Shares Jump 8% Amid Fund Raise Talks: 10 Things To Know

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Yes Bank Share Today: The stock rose to as high as Rs 38.00 during the session

Yes Bank shares jumped 8 per cent on Thursday a day after the private sector lender said it had received non-binding expressions of interest from JC Flowers, Tilden Park Capital Management, OHA (UK) (part of Oak Hill Advisors) and Silver Point Capital for a cash infusion. Yes Bank shares started the day higher at Rs 36.95 apiece and climbed to as high as Rs 38.00 at the strongest level of the day by afternoon, marking an intraday jump of 7.95 per cent compared with their previous close of Rs 35.20.

Here are 10 things to know about Yes Bank shares:

  1. In its regulatory filing late on Wednesday, Yes Bank said its financial advisors were in discussions with these potential investors on the commercial terms, which were subject to regulatory approvals and dispensations. (Track Yes Bank shares)

  2. The Reserve Bank of India (RBI) will assess the suitability of the acquirer and the extent of its control. Market regulator Sebi or Securities and Exchange Board of India will have to clear the price at which new equity is sold.

  3. In January, Yes Bank said it had rejected a $1.2-billion offer from Canadian investor Erwin Singh Braich and Hong Kong-based SPGP Holdings, which is backed by the Canadian family office of Erwin Singh Braich.

  4. Yes Bank also informed the stock exchanges about a delay in the announcement of its earnings for the October-December period. The financial results will be declared on or before March 14, the bank said.

  5. The announcement of earnings exceeds the 45-day period stipulated under Sebi regulations which mandate a listed company to declare its numbers.

  6. Giving the rationale behind the delay, the lender said it was busy with the capital-raising exercise, which included working with investment bankers, legal and accounting advisors, investors and independent vendor/legal due diligence commissioned for investors.

  7. As of Wednesday’s closing price, the Yes Bank stock has declined 25.03 per cent so far this year.

  8. In 2019, Yes Bank shares plunged 74.25 per cent as soured debt mounted given its exposure to shadow banks entangled in a prolonged crunch in the local credit market.

  9. On Wednesday, India Ratings downgraded Yes Bank’s long-term issuer rating to ‘IND A-‘ from ‘IND A’, while maintaining a “Rating Watch Negative (RWN)” outlook. The agency said the downgrade reflects the continued delay and inconclusive quantum of the anticipated equity infusion in Yes Bank.

  10. Moody’s Investors Service last month Yes Bank’s credit ratings under review stating that the bank’s “standalone viability” is “getting increasingly challenged by its slowness in raising new capital”, after lowering them the previous month.



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