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Yes Bank jumps on bargain hunting

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Yes Bank jumped 5.84% to Rs 40.80 on bargain hunting after a steep selling in the past three sessions.

Shares of Yes Bank tumbled 18.50% in three sessions to Rs 38.55 on 14 January 2020, from its closing high of Rs 47.30 on 9 January 2020.

Yes Bank announced post trading hours on Tuesday, 14 January 2020, that it will hold extraordinary general meeting on 7 February to seek shareholders' nod to raise Rs 10,000 crore via combination of equity and debt.

The bank will seek shareholders' nod to raise the amount through one or more instruments such as a qualified institutional placement (QIP), American depositary receipts (ADR) and global depositary receipts (GDR), foreign currency convertible bonds (FCCBs) or any other methods on private placement basis, according to a regulatory filing.

Further, Yes Bank will also seek shareholder's nod to increase the authorized share capital from Rs 800 crore to Rs 1,100 crore.

Last week the bank's board approved raising upto Rs 10,000 crore, in one or more tranches, through QIP/GDRs/ADRs/FCCBs/or any other methods on private placement basis.

The board also decided to not proceed with the proposed investment offer of Erwin Singh Braich/SPGP Holdings, while it is open to considering the $500 million offer from Citax Holdings and Citax Investment Group. The final decision will be taken in the next board meeting.

In November 2019, the bank said that various investors have expressed willingness to subscribe to equity shares of the bank.

Among the institutional investors, a top-tier US Fund House, Discovery Capital and Ward Ferry expressed interest in acquiring fresh stake in the bank. Aditya Birla Family Office, Citax Holdings & Citax Investment Group, GMR Group and Associates, Erwin Singh Braich I SPGP Holdings and Rekha Jhunjhunwala are the five family offices that have expressed interest in subscribing to the equity of the bank.

None of the investors will be allotted equity shares such that their holding exceeds 25% of the share capital of the bank.

Meanwhile, Yes Bank after market hours on Tuesday, 14 January 2020, said that it acquired 12,73,21,500 equity shares, or 29.97% equity, of Rosa Power Supply Company, a wholly owned subsidiary of Reliance Power, pursuant to invocation of pledge of shares.

The Rosa thermal plant (1,200 MW) at Shahjahanpur in Uttar Pradesh, owned by the Rosa Power Supply Company generated 4341 million units in the year ended 31 March 2019.

On a standalone basis, Yes Bank reported a net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. Total income fell 4.3% to Rs 8,332.21 crore in Q2 September 2019 over Q2 September 2018.

Yes Bank has pan-India presence covering 53 metro, 29 states and 7 Union Territories. The bank with 1120 branches, 1456 ATMs across the nation has an employee head count of 21,136 as of 31 March 2019.

On the technical front, the stock's RSI (relative strength index) stood at 32.176. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at Rs 55.61 and its 200-day moving average (DMA) placed at Rs 104.53, both of which would serve as a resistance levels in the upcoming trading sessions.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 15 2020. 11:59 IST