Rakesh Jhunjhunwala likely to withdraw from $25 million Yes Bank investment plan, says report

Billionaire investor Rakesh Jhunjhunwala might shelve plan to invest $25 million in Yes Bank, the Hindu BusinessLine reported. He had planned to invest the sum in the private sector lender through his wife Rekha's family office.

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 person aware of the development 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.

Meanwhile, media reports also suggested that Yes Bank may reject $1.2 billion fund infusion plan from Canada’s Erwin Singh Braich and Hong Kong-based SPGP Holdings.

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