YES Bank’s shares slipped over 19 percent on Wednesday after the company’s board meeting mulling over fundraising remained inconclusive.
Uncertainty over fundraising saw YES Bank stock coming under heavy selling pressure. The bank's share slipped over 19.38 percent intraday on Wednesday. The bank's share settled 15.33 percent lower at Rs 42.8 on the BSE.
The bank in a statement said on Tuesday that its board meeting was inconclusive and still could not firm up who would be its potential investors. No confirmation about Rakesh Jhunjhunwala’s proposed $25-million investment in the bank also battered the stock.
YES Bank earlier informed the exchanges that Citax Holdings and Citax Investment Group, led by Srinivas Solaraj, had made an offer to invest $500 million. It has been quite sometime now the bank is looking for investors to raise up to $2-billion.
The bank in the filing also informed exchanges that a $1.2 billion binding offer of Canadian investor Erwin Singh Braich was still under consideration.
The final decision on Citax Holdings and Citax Investment Group's investment in the bank will be taken in the next board meeting, subject to requisite regulatory approval, it said.
The bank said that its board will continue to evaluate other potential investors to raise $2 billion. Other investors which have shown interest include GMR Group, Rekha Jhunjhunwala and Aditya Birla Family Office.
According to a BusinessLine report, billionaire investor Rakesh Jhunjhunwala might shelve his plan to invest $25 million in the bank due to uncertainty over the lender's capital raising plans.
On November 29, YES Bank said that a US-based investor was interested in investing $120 million. Several investors have showed interest to invest in the bank, but nothing concrete has happened so far.
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First Published: IST