Shares of Yes Bank up by 24 percent after proposal from Hong Kong investor

Last Updated: Thu, Oct 31, 2019 20:23 hrs
YES bank

Mumbai: Shares of Yes Bank soared by as much as 24 per cent on Thursday post the lender having received a binding offer from a global investor for an investment of $1.2 billion.

On the BSE, Yes Bank shares gained 24.03 per cent or Rs 13.65 to close the trading session at Rs 70.45 per share. The scrip touched a high of Rs 76.65 and a low of Rs 54.90 during the day.

Although the credentials of the investor are yet to be announced, a CNBC TV18 report was quoted as saying that Hong Kong-based SPGP Holdings may have been interested in the investment.

The bank is yet to announce the investor owing to regulatory limitations. In a regulatory filing to the exchanges, Yes Bank said: "The Bank would like to inform that it has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares, subject to regulatory approvals or conditions as well as Bank's Board and Shareholders approvals."

Yes Bank Limited is a private sector bank, founded by Rana Kapoor and Ashok Kapur in 2004. Nearly a year ago, the banking regulator trimmed Rana Kapur's stay as CEO to January 2019. Stocks of the bank have since then been on a free fall. 

The exit of Group President Rajat Monga in October further added to a mad-scramble with investors making a mass-exodus. Stocks took a sudden dip and hit a 52 week low of 29.05 around the time when rumors on Monga's departure caught fire.