YES Bank share price gained in early trade today after the lender announced it would raise Rs 15,000 crore through further public offering of shares. Share price of YES Bank gained 5.24% to Rs 27.10 against previous close of Rs 25.75 on BSE.
YES Bank share has gained after 4 days of consecutive fall. The large cap share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock hit 52-week high of Rs 108.40 on July 17, 2019 and 52-week low of Rs 5.55 on March 6 this year. The large cap stock has fallen 44.09% since the beginning of this year and declined 71.8% during the last one year.
Market cap of the bank fell to Rs 33,196 crore. Total 16.76 lakh shares changed hands amounting to turnover of Rs 4.35 crore. Board of directors of YES Bank cleared a further public offering of shares to raise around Rs 15,000 crore. The funds are being raised to increase the bank's capital adequacy to around 10 per cent.
YES Bank will soon file FPO papers with the market regulator SEBI and registrar of companies before offering shares via a public offer. "We wish to inform you that the Capital Raising Committee of the Board of Directors of the Bank ("CRC"), at its meeting held earlier today i.e., July 7, 2020, has approved raising funds by way of a further public offering ("Offer")," the bank informed the stock exchanges.
The raising of funds via FPO will help the bank restore its capital adequacy ratio. Capital Adequacy Ratio of YES Bank was pegged at 8.5 per cent at the end of FY20, as opposed to 16.5 per cent seen at the end of FY19. The bank's Tier I ratio was below RBI's regulatory minimum.
A meeting of the Capital Raising Committee of the bank will also meet on July 10 to consider and approve the price band and discount, if any, as permitted under the provisions of the SEBI ICDR Regulations, the lender said.
By Aseem Thapliyal