Shares of private lender Yes Bank rose nearly 9 percent in the early trade on November 5 after Rakesh Jhunjhunwala bought a stake in the company via open market transactions.
Ace investor Rakesh Jhunjhunwala bought 1.29 crore shares in private lender on November 4 through open market transactions.
According to bulk deal data available with the BSE, Jhunjhunwala bought 12,950,000 shares of the private lender, that translates to around 0.5 percent stake in the bank.
The shares were bought at an average price of Rs 67.1, taking the transaction to Rs 86.89 crore.
The bank’s chief executive said it has received a binding offer of $1.2 billion from a global investor and in addition, received eight bids from global investors worth close to $1.5 billion.
Yes Bank has been eyeing a capital infusion and did successfully raise $273 million through a Qualified Institutional Placement recently, resulting in equity dilution of 10 percent. However, it is now gearing up for further capital infusion that will both help in absorbing the asset quality shock and kickstart growth.
The capital adequacy ratio of the bank has dipped in the last few quarters due to the accelerated recognition of non-performing assets(NPAs) under chief executive, Ravneet Gill.
“We have $3 billion of potential money which can come in and will be looking at all the options with an open mind,” Gill said.
He said the bank may opt for either a single investor or multiple investors participating in the fundraiser.
Its common equity tier-I capital buffer will go up by 2.60 percent over the 8.7 percent in September 2019 if the $1.2 billion funds come in, he added.
The private lender had reported a loss of Rs 600.08 crore for the July-September quarter on November 1.
Net interest income during Q2 declined 9.6 percent year-on-year to Rs 2,185.91 crore, which including fresh slippages of around Rs 228 crore.
At 09:16 hrs Yes Bank was quoting at Rs 70.35, up Rs 4.25, or 6.43 percent on the BSE.