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Last Updated : Dec 10, 2019 02:35 PM IST | Source: Moneycontrol.com

Yes Bank share price dips 9% as Rakesh Jhunjhunwala likely to withdraw plans to invest in co

The company has decided to raise upto $2 billion through the preferential allotment of the company's shares.

 
 
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Yes Bank share price declined 9 percent intraday on December 10 on the back of the report stating that the Rakesh Jhunjhunwala was likely to withdraw the plan to invest in the private lender.

He is expected to issue a formal letter to this effect on December 10 when the board of directors of Yes Bank meets to discuss the capital-raising plans, as per reports.

The company has decided to raise upto USD 2 billion through the preferential allotment of the company's shares.

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Also Read: Rakesh Jhujhunwala may withdraw plan to invest $25mn in Yes Bank

Three institutional investors and five family offices expressed interest in acquiring fresh stake in the bank including Top Tier US Fund House, Discovery Capital and Ward Ferry (institutional investors) and Aditya Birla Family Office, Citax Holdings Ltd. & Citax Investment Group, GMR group & associates, Erwin Singh Braich/ SPGP Holdings and Rekha Jhunjhunwala.

Also Read: Yes Bank likely to reject Canadian industrialist Braich's $1.2 bn bid: Report

The board of directors will reconvene on December 10 to finalise and is expected to approve the details of the preferential allotment and convene an extraordinary general meeting subsequently to obtain the approval of the shareholders.

In November, ace investor Rakesh Jhunjhunwala bought 1.29 crore shares in private lender through open market transactions at an average price of Rs 67.1.

Recently, the bank sold its entire holding of 13,77,000 equity shares having nominal value of Rs 10 each, constituting 5.49 percent of the paid-up share capital of One Point One Solutions.

Last week, Moody's Investors Service downgraded bank's long-term foreign currency issuer rating to B2 from Ba3.

Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings to B2 from Ba3, foreign currency senior unsecured MTN program rating to (P)B2 from (P)Ba3, and Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from b1.

At 14:34 hrs Yes Bank was quoting at Rs 51.00, down Rs 5.20, or 9.25 percent. It has touched an intraday high of Rs 56.30 and an intraday low of Rs 49.30.

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First Published on Dec 10, 2019 09:29 am
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