YES Bank shares tank 6% after management defers share sale plans
Shares of YES Bank extended losses to slump 6 per cent in Friday's session even as the private sector bank deferred its plans to raise $1 billion, citing extreme volatility.
BT Online New Delhi Last Updated: September 9, 2016 | 14:12 IST
Shares of YES Bank extended losses to slump 6 per cent in Friday's session even as the private sector bank deferred its plans to raise $1 billion, citing extreme volatility in trading due to misinterpretation of new QIP guidelines.
On Thursday, the stock plunged over 5 per cent and fell as much as 6.03 per cent in intraday trade on the BSE.
"Due to extreme volatility during today's trading day because of misinterpretation of new QIP guidelines, YES Bank has been advised by its appointed merchant bankers to defer its proposed QIP," the company said in a filing to BSE.
Earlier in June, YES Bank Managing Director and Chief Executive Officer Rana Kapoor had said the bank will raise $1 billion from overseas investors in the current fiscal.
The Cabinet Committee on Economic Affairs had approved YES Bank's proposal in May this year to increase foreign investment limit to 74 per cent, entailing FDI inflows of $1 billion (about Rs 6,637 crore).
"We have now headroom of about 32 per cent with the approval. There is no immediate need for raising capital but depending on market conditions, we can raise during the current fiscal," Kapoor had said.
The increase in foreign investment limit provides the bank with significant enhanced flexibility in global capital raising.