Yes Bank Hits 10% Lower Circuit On Listing Of FPO Shares

Shares of Yes Bank had been locked on the decrease circuit of 10 per cent at Rs 12.30 on the BSE after the itemizing of contemporary shares that had been allotted within the follow-on public provide (FPO). The nation’s seventh largest personal sector lender by market capitalisation had raised Rs 15,000 crore by issuing shares on the worth of Rs 12 per share.

“12,504 million equity shares of Yes Bank are listed and admitted for trading on the exchange with effect from July 27, 2020. These shares rank pari-passu with the existing equity shares of the company,” the BSE mentioned in its launch.

Yes Bank has already introduced that the funds raised by FPO can be used for progress and enlargement, together with enhancing its solvency, capital adequacy ratio and evolving regulatory necessities.

Yes Bank was on the point of collapse earlier this yr because of its previous historical past of offering simple loans, which ended up as non-performing belongings – or dangerous loans – on its books. Since then, SBI has stepped in to amass a stake within the personal lender and to maintain it afloat.

The shares of the personal sector financial institution have fallen persistently because the pricing announcement of the FPO. The inventory has shed as a lot as 54 per cent from the extent of Rs 26.65 touched on July 9, 2020.

The BSE Sensex was quoting at 37,908.80, greater by 222 factors or 0.5 per cent and the NSE Nifty was at 11,127.30, up 72 factors or 0.6 per cent on the time.