Yes Bank stocks lose 3% despite reports of fresh investment
Yes Bank stocks on Monday closed over 3 per cent lower on the BSE despite reports that European entities have showed interest in investing up to $1 billion in the bank.
The fourth largest private bank has been struggling to enthuse capital to invest despite its revelation of a list of investors putting in a total of $2 billion in investments, chiefly owing to the lack of clarity on a binding offer of $1.2 billion -- 60 per cent of the total capital the bank aims to raise -- submitted by mysterious investor Erwin Singh Braich.
Earlier this month, the bank after its 5-hour board meet said that it is willing to "favourably consider the offer of $500 million by CitaxHoldings and Citax Investment Group".
On Braich's offer the bank had said "The binding offer of $1.2 billion submitted by Erwin Singh Braich/SPGP Holdings continues to be under discussion."
A lack of enthusiasm was seen among investors after the bank last month declared the list of investors who have offered to invest in Yes Bank. Investors' doubts over Braich stemmed from the fact that he has been involved in a number of bankruptcy, lawsuits and failed business deals.
Yes Bank has also been the most active stock for the past consecutive months owing to divergent news flow. The bank's shares closed on Monday 3.31 per cent lower at Rs 49.65 a share on BSE.
Investors that the bank informed last month 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).IANS