Yes Bank shares closed 9.6 percent higher and the private sector lender ended as top percentage gainer on both indexes. Intra-day the stock rallied 10.55 percent, hitting the day's high of Rs 96.90 after reports of fresh capital infusion by global private equity firms like TPG Capital and Advent International.
TPG and Advent are 'most likely' to invest around $350 million each in the bank, according to a Livemint report.
Yes Bank has been in talks with at least 76 firms, including PE funds, high net-worth individuals and investment managers over the past two months to seek more funds, it added.
Responding to reports on capital infusion, Yes Bank said in an exchange filing, "Kindly note that the Bank in ordinary course of its business continues to explore various means of raising capital/funds through issuance of securities to diverse set of investors, in order to meet its business/ regulatory requirements subject to compliance with prescribed procedures and receipt of statutory/regulatory approvals. The Bank is not aware of the source, which resulted in the above mentioned news item and as a matter of policy, the Bank would not like to comment on such speculation."
Meanwhile, in a separate development, Yes Bank acquired 32.75 million shares or 18.55 percent stake in Cox & Kings Ltd and 34,080 shares or 30 percent stake of Ezeego One Travels & Tours through invocation of pledge, the lender informed the exchanges today.
The pledge on these shares were invoked due to a default in terms of credit extended by YES Bank to Ezeego One Travels & Tours, a Cox & Kings venture, the lender said.
The lender did not disclose the name of the promoter, whose shares were invoked.
As per the latest available data, promoters held 39.73 percent stake in Cox & Kings Ltd as on June 30, of which they had pledged 69.30 percent stake.
Cox & Kings has since June defaulted on several debt obligations such as interest payment on non-convertible debentures and payments against commercial papers due to cash flow mismatch.
Yes Bank stock settled at 96.05 at Friday's close of trade.
Nine of the 39 analysts covering the stock have a “buy” or “strong buy” rating, 13 have a “hold”, while 17 rate it at “sell” or “strong sell”; median PT is Rs 108, according to Refinitiv data.
The stock is down over 50 percent this year.
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First Published: IST