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Last Updated : Oct 31, 2019 07:21 PM IST | Source: Moneycontrol.com

Yes Bank gets binding offer of $1.2 bn from global investor, stock surges 30%

The proposed investment will be done through issuance of fresh equity shares.

Yes Bank on October 31 informed stock exchanges that it had received a  binding offer of $1.2 billion from a global investor.

The proposed investment will be done through the issuance of fresh equity shares, subject to regulatory approvals as well as approval from the bank’s board and shareholders.

The announcement sent Yes Bank's stock soaring 30 percent over its previous close to around Rs 73 levels.

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"The bank received strong interest from multiple foreign and domestic private equity and strategic investors for the capital raise," Yes Bank said in its BSE filing.

The lender said it is continuing advanced discussions with other global and domestic investors.

Last month, Yes Bank had told stock exchanges that it received strong interest from multiple foreign as well as domestic private equity and strategic investors for the capital raise and remains firmly on course to raising growth capital subject to necessary approvals.

At the beginning of this month, the stock had collapsed to a decade low of Rs 29 on concerns of the bank’s ability to raise capital.

Yes Bank has been in turmoil over the last year ever since the RBI rejected an extension for former CEO and co-founder Rana Kapoor.

A few weeks back, Yes Bank CEO Ravneet Gill had told Bloomberg that the company would be able to raise $1.2 billion "faster than the market expects".

In August this year, Yes Bank had raised Rs 1,930 crore through a qualified institutional placement (QIP) at Rs 83.55 per share. But the stock kept sliding subsequent to the share placement, mainly on concerns over Yes Bank’s exposure to the Indiabulls Housing Finance.

Yes Bank CEO Gill later clarified that his company was quite comfortable with the exposure to Indiabulls Housing Finance.

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First Published on Oct 31, 2019 01:25 pm
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