Yes Bank Shares Jump 9% After CEO Says Lender Near Deal To Sell Stake
Yes Bank shares rose nearly 9 per cent on Wednesday, a day after its chief executive officer and managing director said the private sector lender was close to securing a deal to sell a minority stake to a global technology company. Yes Bank shares rose as much as 8.55 per cent on the Bombay Stock Exchange (BSE) to an intraday high of Rs 68.50 apiece. On the National Stock Exchange (NSE), Yes Bank shares opened higher at Rs 66 apiece and climbed to as much as Rs 68. 75 apiece, marking an intraday increase of 8.95 per cent.
Without naming the investor, Ravneet Gill said the stake sale was likely to be less than 10 per cent initially but could rise, describing the buyer as one of the world's top three technology companies that had not previously invested in a bank.
The board has given the private sector bank the go-ahead to raise more growth capital. The bank has approval to raise $1.3 billion but aims to bring in an additional $1 billion to $1.2 billion via a preferential allotment, according to news agency Reuters.
In addition to the tech investor, smaller investors could also pump in about $200 million to $250 million, Mr Gill said.
At 11"09 am, Yes Bank shares traded 8.40 per cent higher at Rs 68.40 apiece on the BSE, outperforming the benchmark Sensex index which was up 0.41 cent.
In August, the bank raised Rs 1,930 crore via qualified institutional placement (QIP), a capital-raising tool commonly used in the country, to improve its capital adequacy ratio.
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