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Last Updated : Dec 11, 2019 04:59 PM IST | Source: Moneycontrol.com

Yes Bank share price falls 15% after board meet; Nomura maintains neutral

Nomura has maintained neutral rating on the stocks with a target at Rs 63 per share as it feels the board outcome on bids is negative.

Yes Bank share price shed 15 percent on December 11 after the bank's board said it is considering Citax Holdings' $500 million offer.

As per the company's release, Yes Bank is "favourably" considering the offer of Citax Holdings and Citax Investment Group and the final decision regarding allotment will be taken in the next board meeting.

Yes Bank further added that the binding $1.2 billion submitted by Erwin Singh Braich/SPGP Holdings is still under discussion.

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Read more: Yes Bank: Many questions, but few answers

The bank shall also continue to evaluate other potential investors to raise capital another $2 billion.

Nomura has maintained a neutral rating on the stocks with a target of Rs 63 as it feels the board outcome on bids is negative, adding that the $1.2 billion bid is unlikely to go through given the legal cases.

"There has been very little resolution in the large stressed exposures, while large provisioning without a capital infusion will lead breach of capital limits soon," said Nomura.

At close, Yes Bank was quoting at Rs 42.80, down Rs 7.75, or 15.33 percent on the BSE.

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First Published on Dec 11, 2019 10:03 am
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