NEW DELHI: Shares of YES Bank fell 6 per cent in Friday’s trade to take its losing streak to six straight sessions. Stock exchange BSE has revised the circuit limit for the stock to 10 per cent from 20 per cent earlier.The stock fell 6.44 per cent to hit a low of Rs 13.80 on BSE. With this, the scrip has fallen 30.30 per cent in the last six days of battering.
The bank has been declining ever since it concluded its Rs 15,000 crore follow-on public offer (FPO).
The FPO sailed through, but only due to the lender’s underwriting agreement with SBICap, wherein the latter agreed to underwrite Rs 3,000 crore at a price equal to or the lowest end of the price band.
The issue eventually attracted bids for 8,47,12,49,000, which was 93 per cent of the issue size of 9,09,97,66,899 shares, data compiled from NSE suggests. For an FPO to sail through, a minimum of 90 per cent of the issue is needed to be subscribed.
YES Bank was near bankrupt in March and was rescued by a Reserve Bank-led bailout plan under which SBI picked up 49 per cent equity in the once-storied private sector lender.
Meanwhile, rating agency Moody’s feels the capital raising by the bank is credit positive. The FPO is seen strengthening the core capital and loss-absorbing buffers, besides reducing default risks for creditors.
Source: ET Markets