Yes Bank plunges 12% ahead of key meet

Mumbai, Dec 10 (SocialNews.XYZ) Stock price of Yes Bank on BSE extended losses on Tuesday, falling nearly 12 per cent, as investors feared an adverse outcome of the crucial board meeting later.

The Ravneet Gill-led fourth largest bank is expected to take a call on the $2 billion investment offers.

A spike in volumes (trading in a stock) was also seen in Yes Bank as investors rushed to sell the banks shares ahead of the board meeting which may well prove to be the turning point for the bank.

Yes Bank has also been the most active stock for the past consecutive months owing to divergent news flow.

Investors are running scared over reports that the bank may decline to accept the $1.2 billion offer by the controversial Canada-based Erwin Singh Braich. The investment offer by Braich is the biggest chunk of the $2 billion investments offer to revive the struggling bank.

A lack of enthusiasm was seen among investors after bank last month declared the list of investors who have offered to invest in Yes Bank.

Investors doubt stemmed from the fact that Braich has been involved in a number of bankruptcy cases, 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 off-late. Moreover, 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.

At 2.53 a.m., Yes Bank was trading 10.14 per cent lower at Rs 50.50 a share on the BSE.

Source: IANS