Share of Yes Bank falls despite getting nod for fundraising

The shares of Yes Bank fell by 8 per cent at the time of market opening on January 13, 2020 (Monday) despite their fundraising plans approved in the bank’s board meeting on Friday. The movement is contrary to what actually happened when the bank had initially shown interest in the raising of funds.

In our last week’s article, we talked about how the shares jumped after Yes Bank announced that they are planning to raise funds in their next board meeting.

Check: https://www.dsij.in/DSIJArticleDetail/ArtMID/10163/ArticleID/10907/Yes-Bank-shows-interest-in-fundraising-Stocks-jump

However, the market reacted quite opposite on Monday; after the bank rejected $ 1.2 billion investment offered by Erwin Singh Braich on the ground that the bank will raise Rs 10,000 crore, in one or more tranches, by issuing securities or through Qualified Institutional Placement (QIP) or by any other means of equity or debt but not with the offer made by Erwin Singh Braich and SPGP holdings. Adding to this, the bank said in a statement that it might also take up investment offers by Citax as well as their holdings.  

It is being presumed that the stock price might have fallen also because of the resignation of Uttam Prakash Agarwal, the independent director and the Chairman of Yes Bank’s audit committee. He resigned amidst the bank’s ongoing capital raising activities.

At 3.05 pm, the share of Yes Bank is trading at Rs 42.20, down by 5.80 per cent, against its previous close of Rs 44.80. Nonetheless, the market on Monday opened at Rs 43.40. Its 52-week high is Rs 285.90 and its 52-week low is Rs 29.05.