YES Bank share price tumbled in early trade today after the lender said the board was willing to favourably consider the offer of $500 million of Citax Holdings and Citax Investment Group and deferred the final decision regarding allotment of shares to next board meeting. The lender did not disclose the date of the meeting.
Share price of YES Bank fell up to 19.49% to Rs 40.70 compared to the previous close of Rs 50.55 on BSE. YES Bank stock opened with a loss of 2.47% at Rs 49.30 on BSE. The mid cap stock has lost 22.86% in the last two days. YES Bank stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. YES Bank stock has lost 75.99% in last one year and fallen 76.56% since the beginning of this year.
YES Bank stock has declined 41% in last one month. The lender in a communication to bourses on Tuesday evening said the binding offer of $1.2 billion submitted by SPGP Holdings and Canada's Erwin Singh Braich, which accounts for 60 per cent of its planned $2 billion capital raising, would "continue to be under discussion".
On November 30, YES Bank in a filing to the bourses disclosed the list of potential investors willing to infuse funds into the bank. The bank mentioned entrepreneur Erwin Singh Braich/SPGP Holdings as a key investor with whom talks were ongoing and expected to be concluded shortly. Hong Kong-based SPGP Holdings/ Erwin Singh Braich committed nearly Rs 8,600 crore ($1,200 million) to the bank.
Other parties who showed willingness for fund infusion, according to the bank, were Discovery Capital ($50mn), GMR Group and Associates ($50 mn), Rekha Jhunjhunwala ($25 mn) , Aditya Birla Family Office ($25 mn) , Ward Ferry ($30 mn) and Citax Holdings Ltd and Citax Investment Group ($500 mn).
On December 2, the bank said that Capital International, part of the $1.87-trillion US-based Capital Group, has committed to invest at least $120 million in the private sector lender.
By Aseem Thapliyal