YES Bank shares were rising on Thursday's early session as the lender's board of directors gave its nod to a further public offer (FPO) to raise around Rs 15,000 crore and boost its capital adequacy.
State Bank of India said its board has approved for the investment of up to Rs 1,760 crore in Yes Bank's upcoming FPO.
YES Bank share price gained 5.3% to the intraday high of Rs 27.50 as against the last closing value of Rs 26.10. The stock price of the private lender opened at Rs 27.45 and also hit a day's low at Rs 26.50 on BSE.
The stock price of YES Bank has risen 1.33% this week. Although YES Bank stock trades higher than 5-day moving averages, it's lower than 20, 50, 100 and 200-day moving averages.
The rise in stock price was in line with the 'Private Banks' sector that thas risen 1.23% in today's session.
In an exchange filing on July 8 SBI said,"Pursuant to the intimation given by Yes Bank Ltd. to the stock exchanges on 07th July' 2020 on the issue of raising capital the Executive committee of the central board (ECCB) of State Bank of India at its meeting held today on 08 July 2020 has accorded approval for a maximum investment of up to Rs 1,760 in the Further Public Offering (FPO) of Yes Bank Ltd."
YES Bank board committee is scheduled to meet again on or after July 10 in order to consider and approve, among other things, the price band and discount, if any, for the FPO. The private lender has reserved a portion of up to Rs 200 crore for employees in the forthcoming FPO.
The RBI had kickstarted its reconstruction scheme for the lender earlier this year, following which eight private financial institutions, including SBI, ICICI Bank, HDFC, acquired stakes in YES Bank as part of the reconstruction scheme.hare Market LIVE: Sensex rises 175 points, Nifty at 10,760; IndusInd Bank, ICICI Bank top gainersStocks in news: TCS, ICICI Bank, Yes Bank, South Indian Bank, Infosys