This article is more than 2 year old.

Yes Bank up 9% on reports of private equity, tech firms' interest in stake sale

Mini

Yes Bank shares surged as much as 9 percent on Monday following reports that the private lender is in talks with global private equity firms and major technology companies like Microsoft for a large stake sale.

Yes Bank up 9% on reports of private equity, tech firms' interest in stake sale
Yes Bank shares surged as much as 9 percent on Monday following reports that the private lender is in talks with global private equity firms and major technology companies like Microsoft for a large stake sale.
Talks have substantially advanced between Yes Bank and private equity firms TPG, The Carlyle Group and Farallon Capital in the past few days, and could result in one or more of these firms acquiring a stake, thereby providing the lender much-needed capital, the Economic Times reported.
Another report in Mint said three top technology companies, including Microsoft, are interested in buying a strategic stake in the bank. These talks began three weeks ago, and Yes Bank could reportedly sell as much as 15 percent through equity issuances.
A third report in Business Standard said that the lender was planning a $1 billion rights issue by December.
In a separate development, Yes Bank on Sunday lodged a complaint with Mumbai Police and cyber cell against the spread of fake news and rumours about the private sector lender on WhatsApp and other social media platforms.
"Yes Bank has requested the authorities to form a multi-disciplinary team of experts for detecting the origin of the fake news and assess the short-sell positions, held either directly or indirectly by such accused persons," the private sector lender said in a statement.
Yes Bank shares have slumped nearly 80 percent in the current financial year due to stressed asset quality, concerns over high promoter pledges, corporate governance irregularities and inadequate capital.
Last Monday, the stock of the lender fell 30 percent, its biggest fall in a decade after one of the bank’s promoters sold 10 crore equity shares (3.92 percent of the bank's equity share capital) of the company.
Post the fall, the lender in a BSE filing, clarified that the bank's financial and operating metrics remain intrinsically sound and stable with liquidity position well in excess of regulatory requirements, leading to their biggest ever single-day gain, rising nearly 34 percent on Thursday.
The private sector bank also hosted a conference call to soothe investor concerns, where chief executive officer Ravneet Gill announced the resignation of group president Rajat Monga from the company due to personal reasons.
At 11.18 am, Yes Bank shares were up 3.56 percent, quoting at Rs 43.65 apiece on NSE. The stock opened at the day's high of Rs 45.95 from its Friday's close of Rs 42.15.
Also, catch the latest market action and updates with CNBCTV18.com’s blog.
next story

Market Movers

Currency

CompanyPriceChng%Chng