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Last Updated : Dec 10, 2019 08:16 PM IST | Source: Moneycontrol.com

Rakesh Jhunjhunwala may withdraw plan to invest $25mn in Yes Bank; stock down over 3%

Billionaire investor Rakesh Jhunjhunwala had planned to invest $25 million in Yes Bank through his wife Rekha Jhunjhunwala's family office

 
 
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Billionaire investor Rakesh Jhunjhunwala might shelve a plan to invest $25 million in Yes Bank due to uncertainty over the lender's capital raising plans, BusinessLine reports.

The owner of Rare Enterprises had planned to invest $25 million in the private sector lender through his wife Rekha Jhunjhunwala's family office, the report said.

Moneycontrol could not independently verify the story.

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Jhunjhunwala is expected to release a formal letter regarding the investment on December 10, the report stated.

"The logic behind not subscribing to Yes Bank's preferential allotment by Jhunjhunwala is that it is higher than the prevailing market price. There is also a lock-in period," a source told the newspaper, adding that the market veteran can instead buy shares at a lower price in the open market without a lock-in period.

Yes Bank's shares closed at Rs 56.2 on the BSE on December 9, and the preferential offer is priced at Rs 78. At 09:38 hours, the counter was quoting Rs 54.50, down Rs 1.75, or 3.11 percent.

In related news, Yes Bank is likely to reject a $1.2 billion capital raising plan from Canada’s Erwin Singh Braich and Hong Kong-based SPGP Holdings, a Bloomberg report suggests.

Yes Bank called both there reports 'purely speculative'.

The bank's board is expected to discuss the proposed $2 billion capital raising at its meeting on December 10. The board had approved the capital raising plan in November.

 

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First Published on Dec 10, 2019 09:19 am
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