YES Bank share price fell over 7% on Wednesday after the private sector lender said its board would consider raising of funds by way of issuance of equity shares when it meets on August 30. As per media reports, the management of the company is seeking permission from the board for raising Rs 9,000 crore ($1.2 billion).
YES Bank share price started higher at Rs 65 on BSE against the previous close of Rs 64.30 and touched intraday high of Rs 65.20. Later the script fell 7.62% to day's low of Rs 59.40 on BSE.
YES Bank share price has fallen after three days of consecutive gain. Overall, 87.7 lakh shares and 132.66 lakh shares changed hands on BSE and NSE, respectively. The stock has fallen over 66% year-to-date. YES Bank share is trading lower than 30, 50, 150 and 200-day moving average.
YES Bank informed the bourses on Tuesday post trading hours that the Board is scheduled to meet on August 30, to approve a proposal for further fundraising.
"Board Meeting will be held on Friday, August 30, 2019 at Mumbai, to consider and approve raising of funds by way of issuance of equity shares including but not limited through preferential issue and/ or Qualified Institutions Placement (QIP)/ Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs)/ fully or partially convertible debentures/ convertible Preference shares/ any other financial instruments or securities convertible into Equity Shares or any other instrument on private placement basis," the regulatory filing stated. The equity infusion will be subject to shareholder approval.
YES Bank shares continue to remain under pressure after Gautam Thapar's CG Power informed that it found some unrelated suspicious transactions while going through normal financing assessment. Post this, the lender, that holds 12.79% stake in Gautam Thapar's CG Power, fell to a fresh all-time low of Rs 53.15 on BSE, last week.
Earlier this month, the private sector lender had raised Rs 1,930 crore through Qualified Institutional Placement (QIP). It allotted 23.1 crore equity shares to eligible qualified institutional buyers at Rs 83.55 per share, which as per market analysts, may not be enough to tide over its current liquidity crunch.
In June, lender's chief executive Ravneet Gill had said that the private lender has plans to raise $1.2 billion over 18 months to boost capital through a mix of public and private share sales for refocusing on growth.