Yes Bank Ltd shares plunged 8% in intra-day trade on Wednesday to fall well below the Rs 30-mark, trading at their lowest level in over 10 years.
Yes Bank shares hit a low of Rs 28.70 apiece during Wednesday’s trade, its lowest level since August 2009 on BSE. At 3:06 pm, the stock was trading down 6.1% at Rs 29.30, while the Sensex was trading lower by 257.75 points, or 0.7%, at 38,366. Notably, the Yes Bank stock has lost over 21% in the last five trading sessions.
The stock took a beating after a media report said that Yes Bank has now approached domestic mutual funds for raising fresh equity capital worth $300-500 million as its fund-raising struggles continue. The bank has been aiming to raise a total of $2 billion for months now.
“While there is definite interest in the offering, firm commitments have not been made yet. The bank is in dialogue with mutual funds which had participated in the last equity raising round in 2019,” one of the investment bankers associated with the fundraising exercise told Business Standard.
Earlier this week, another media report mentioned that the Reserve Bank of India (RBI) was preparing a rescue plan for the private lender if it fails to raise funds within the stipulated time.
Yes Bank on 12 February had announced that it would postpone the announcement of its December quarter results till around 14 March 2020 as the lender was in talks with potential investors for raising capital.
The bank said it had received non-binding expressions of interest from several investors, including J C Flowers and Tilden Park Capital Management, OHA (UK) LLP and Silver Point Capital.
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