Yes Bank slipped 6.14% to Rs 52.75 ahead of the bank's board meeting today, 10 December 2019, to decide on the details of preferential allotment of shares.On 29 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 Ltd & 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.
The bank's board will meet on Tuesday, 10 December 2019, to finalize and approve the details of the preferential allotment, subject to regulatory and statutory approvals.
According to media reports, Billionaire investor Rakesh Jhunjhunwala might shelve a plan to invest $25 million in Yes Bank due to uncertainty over the lender's capital raising plans. Jhunjhunwala is expected to release a formal letter regarding the investment on Tuesday, 10 December, reports stated.
Meanwhile, the S&P BSE Sensex was down 182 points or 0.45% to 40,305.13.
In the past one month, shares of Yes Bank slumped 27.73% to its current market price of Rs 52.75, underperforming the Nifty Private Bank index's 0.43% rise in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 37.231. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading below its 50-day moving average (DMA) placed at Rs 56.95, as well as below its 200 DMA placed at Rs 126.47.
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. The total income of the bank fell 4.3% to Rs 8,332.21 crore in Q2 September 2019 over Q2 September 2018.
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