Friday’s trade saw Yes Bank shares drop 6 per cent to take its six in a row loss streak among straight sessions. Stock exchange BSE has revised the circuit limit for the stock to 10 per cent from 20 per cent earlier. With the stock dropping 6.44 per cent to hit a low of Rs 13.80 on BSE, the scrip has subsequently dropped 30.30 per cent in the last six days of battering.
The bank concluded its Rs 15,000 crore follow-on public offer (FPO) that sailed through, but only due to the lender’s underwriting agreement alongside SBICap, wherein the latter agreed to underwrite Rs 3,000 crore at a price equal to or the lowest end of the price band. Ever since the bank has been declining.
Latest NSE compiled data indicated that the issue finally attracted bids for 8,47,12,49,000, accounting for 93 per cent of the issue size of 9,09,97,66,899 shares. A minimum of 90 per cent of the issue is required to be subscribed in order for an FPO to sail through.
Yes Bank was near-bankrupt in March and was rescued by a Reserve Bank-led bailout plan under which SBI picked up 49 per cent equity in the once-storied private sector lender. Meanwhile, rating agency Moody’s feels the capital raising by the bank is credit positive. The FPO is seen strengthening the core capital and loss-absorbing buffers, besides reducing default risks for creditors.
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