Yes Bank rises 35 per cent, thanks to US$1.2 Bn binding offer

The stock of the Mumbai based corporate lender, Yes Bank, rose as much as 35 per cent intra-day on Thursday after the bank reported that it received a bidding offer of US$1.2 bn.

The shares of the bank had plunged as much as 70 per cent from their highs due to multiple issues regarding stressed assets and bad loans. The bank had loan advances to weak firms, such as Jet Airways and Reliance communications. Its asset quality came deteriorated with gross NPA at 5 per cent at the end of the fourth quarter in FY19. The bank had worked effortlessly to raise funds and maintain its liquidity position. In this year, it had raised Rs. 1,930 crore via qualified institutional placement.

Yes bank had informed stock exchanges that it has received strong interest from multiple foreign and domestic private equity and strategic investors to raise the capital. It has received a binding offer from a global investor for an investment of US$ 1.2 bn through fresh issuance of equity shares, subject to regulatory and bank's board and shareholders approvals. The management remains firm on the need for necessary approvals regarding the raise in the capital.

On Thursday, the stock price touched its intra-day high of Rs. 76.65, its high since August 2019. It closed the session at Rs. 70.45, up by 24 per cent on BSE.