Yes Bank share price fell more than 6 percent in early trade on December 11 after the bank’s board said it is considering Citax Holdings’ $500 million offer.
As per the company’s release, Yes Bank is “favourably” considering the offer of Citax Holdings and Citax Investment Group and the final decision regarding allotment will be taken in the next board meeting.
Yes Bank further added that the binding $1.2 billion submitted by Erwin Singh Braich/SPGP Holdings is still under discussion.
The bank shall also continue to evaluate other potential investors to raise capital another $2 billion.
Nomura has maintained a neutral rating on the stocks with a target of Rs 63 as it feels the board outcome on bids is negative, adding that the $1.2 billion bid is unlikely to go through given the legal cases.
“There has been very little resolution in the large stressed exposures, while large provisioning without a capital infusion will lead breach of capital limits soon,” said Nomura.
At 0922 hrs, Yes Bank was quoting at Rs 48.35, down Rs 2.20, or 4.35 percent on the BSE.
News Source: moneyconytrol