“The board is willing to favourably consider the offer of US $500 million of Citax Holdings and Citax Investment Group and the final decision regarding allotment to follow in the next board meeting, subject to requisite regulatory approval,” YES Bank said in a regulatory filing.
The binding offer of US$1.2 billion submitted by Erwin Singh Braich/SPGP Holdings continues to be under discussion, it added. However, the bank further said it shall continue to evaluate other potential investors to raise capital upto $2 billion.
In a late night communication on November 30, YES Bank said that it has increased the size of its equity capital offer to $2 billion from $1.2 billion earlier on “strong interest” shown by NRI investors.
With today’s fall, the stock has tanked over 30 per cent from Rs 63 in a week, as compared to 1 per cent decline in the S&P BSE Sensex. The stock has declined 38 per cent from its recent high of Rs 74.10, touched during intra-day trade on November 29.
Other prominent suitors are the Aditya Birla Family Office ($25 million), GMR Group and Associates ($50 million), and Rekha Jhunjhunwala ($25 million). Besides, a top-tier US fund house has evinced interest to invest $1200 million. Discovery Capital will take $50 million and Ward Ferry, another $30 million.
“Uncertainty regarding equity capital fund infusion, doubts over asset quality and sustained decline in market share from profitable assets lead us to retain our view that YES has a long way to go when it comes to rationalizing operations, resulting in sustained credit cost at lower levels,” analysts at Elara Capital said in recent note.
At 12:10 am, YES Bank was trading 16 per cent lower at Rs 42.55 on the BSE, as compared to 0.07 per cent rise in the S&P BSE Sensex.