Yes Bank slips 5% ahead of key board meet
Stock price of the fourth largest private lender Yes Bank on Tuesday fell as much as 5 per cent ahead of the crucial board meet to take call on the investment offers that the bank has received.
Investors pushed the sell button over reports that the bank may decline to accept the $1.2 billion investments offer by the controversial Canada based Erwin Singh Braich.
Besides, some reports have also emerged that marquee investor Rakesh Jhunjhunwala may also be out of contention.
Earlier the company had informed the exchanges that it will raise $2 billion by way of preferential allotment of shares.
Investors that the bank informed included Capital International which committed to invest at least $120 million, Discovery Capital, $50 million, Ward Ferry, $30 million, Erwin Singh Braich, $1.2 billion, Rakesh Jhunjhunwala, $25 million, and Aditya Birla Family Office, $25 million.
The declaration of the list of the investors by the bank, however was not received by investors too positively chiefly owing to the mysterious investor Erwin Singh Braich.
Investors doubt over Braich stems from the fact that he has been involved in a number of bankruptcy, lawsuits and failed business deals.
Besides, the lack of information on Braich, who seems to steer the revival of the struggling Yes Bank, has also troubled investors.
At 11.33 a.m., Yes Bank was trading 2 per cent lower at Rs 55.10 a share.IANS