Business

Yes Bank To Raise Funds Through Follow-On Public Offer, Stock Jumps 2%

Yes Bank To Raise Funds Through Follow-On Public Offer, Stock Jumps 2%

Capital Raising Committee will meet on or after July 10, 2020 to approve the price band.

Yes Bank shares jumped more than 2 per cent in morning trading, a day after the board of the private lender approved a plan to raise funds through a follow-on public offer. The Capital Raising Committee (CRC) of the board of directors, at its meeting held on July 7, approved fund raising through a follow-on public offer. At 9:55 am, the shares of Yes Bank were trading higher by 2.5 per cent at Rs 26.40. The stock hit an intra-day high of Rs 27.10 and a low of Rs 24.30 thus far.

"The Capital Raising Committee of the Board of Directors of the Bank ("CRC"), at its meeting held earlier today i.e., July 7, 2020, has approved raising funds by way of a further public offering," Yes Bank said in a statement to stock exchanges.The details of the offer would be shared after completing formalities with the Registrar of Companies, the bank said in its release.

A meeting of the Capital Raising Committee will be held on or after July 10, 2020 to approve the price band and discount of the shares on offer.

In March, a total of eight lenders led by State Bank of India had infused more than Rs 10,000 crore into Yes Bank, as part of a rescue deal approved by the Reserve Bank of India. This plan was put in place after the bank was put under a moratorium and its board superseded.

The benchmark indices were trading flat at the time, with the BSE Sensex adding 55 points or 0.1 per cent at 36,728 and the NSE Nifty gaining 19 points or 0.1 per cent at 10,818.