YES Bank shares declined in early trade on Monday after the private sector lender announced it has decided to raise up to $2 billion through preferential allotment of shares from several investors.
Reacting to the development, shares of YES Bank opened at Rs 70, but later fell 7.6% to the intraday low of Rs 63.10 against the previous closing of Rs 68.30 on BSE. YES Bank stock has fallen 2.64% in the last 2 sessions.
YES Bank shares closed 2.5% lower ahead of the fund raising announcement on Friday.
YES Bank share price trades higher than 5, 20 and 50-day moving averages but lower than 100 and 200-day moving averages. 138 lakh and 2,044 lakh shares changed hands on BSE and NSE. Market depth data on BSE suggests 46% buying against 56% selling on the stock.
"Investors have individually expressed their agreement or willingness to subscribe to equity shares of the Bank for an aggregate amount of $2 Billion, which shall be undertaken on a preferential allotment basis," the company said.
Among 'institutional investors' is a US-based fund house whose name will be disclosed early this week ($120mn), Discovery Capital ($50mn), and Ward Ferry ($30mn), while the 'family offices' include Aditya Birla Family Office ($25mn), Citax Holdings Ltd & Citax Investment Group ($500mn), GMR Group and Associates ($50mn) and Rekha Jhunjhunwala ($25mn).
Additionally, the bank plans to close talks shortly on a deal to sell shares worth $1.2 billion to Canadian billionaire Erwin Singh Braich and Hong Kong-based SPGP Holdings, which he backs.
"None of the investors will be allotted equity shares such that their holding exceeds 25% of the share capital of the bank," company said.
Board of directors of YES Bank will meet on December 10 to finalise and approve the details of the preferential allotment and convene an extraordinary general meeting subsequently, to obtain approval of the shareholders, the filing added. The preferential allotment will also be subject to regulatory clearance.