YES Bank shares nosedive by around five per cent

By Newsmeter Network  Published on  2 Dec 2019 8:48 AM GMT
YES Bank shares nosedive by around five per cent

Hyderabad: YES Bank shares are back in news. Its stock nosedived by around five per cent on Monday. The selling pressure in the stock took place after the $2-billion fund raising plan of Yes Bank failed to take-off. The apprehensions over the quality of investors in fund mobilisation triggered selling pressures, observed a market analyst.

Yes Bank shares fell up to five per cent and were trading at Rs 66.35, Rs 1.95 or 2.86 per cent lower on NSE at 12:43pm on Monday. The Yes Bank stock on BSE was trading at Rs 66.35, Rs 1.95 or 2.86 per cent lower. NSE Nifty was trading 6.90 points or 0.06 per cent lower at 12,049.15 points.

According to a statement from Yes Bank last week, Canadian billionaire-investor Erwin Singh Braich would be prime investors as he agreed to purchase almost half of $1.2 billion shares. Reserve Bank of India (RBI) approval for such huge stake buying is also doubtful.

If the stake buying is more than five per cent, RBI approval is mandatory. In this case, it is almost equal or slightly higher to 50 per cent, analysed the market observer. Under normal considerations, the central bank may not give permission to one individual for buying more than 10 per cent stake in the bank.

According to Nomura India, investors, who are market-known, are funding to $180million. SPGP and Citax group are not known among investors.

Yes Bank informed the BSE and NSE that it was in talks with Braich. Citax Holding and Citax Investment Group are likely to invest upto $500 million. Further, a US-based fund house expressed its interest in buying stake up to $120 million.

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