Yes Bank investors lose Rs7,400 crore as shares tank 12.5% in last 3 days1 min read . Updated: 09 Sep 2016, 10:39 AM IST
Yes Bank cites 'extreme volatility and misinterpretation of new qualified institutional placement guidelines' for the share sale delay
Mumbai: Investors of Yes Bank Ltd lost over ₹ 7,400 crore in market value in the last three days. The bank on Thursday deferred its proposed $1 billion new share sale to institutional investors.
On Friday, the stock fell as much as 5.31% and touched a low of ₹ 1,260 a share, a level last seen on 12 August. Shares of Yes Bank have fallen 12.5% in the last three days.
The bank cited “extreme volatility and misinterpretation of new QIP (qualified institutional placement) guidelines" for the delay, in a stock exchange filing on Thursday.
“Due to extreme volatility during today’s trading day because of misinterpretation of new QIP guidelines, Yes Bank has been advised by its appointed merchant bankers to defer its proposed QIP," the company said in the filing.
Shares were being offered to institutional investors in the range of ₹ 1,350 to ₹ 1,410 per share. The lower end of the price band was at a 3.7% discount to Wednesday’s closing price of ₹ 1,405.40 apiece
The book-running managers to the issue included Goldman Sachs (India) Securities Pvt. Ltd, Motilal Oswal Investment Advisors Pvt. Ltd, CLSA India Pvt. Ltd, Edelweiss Financial Services Ltd, HSBC Securities and Capital Markets (India) Pvt. Ltd, Inga Capital Pvt. Ltd, Investec Capital Services (India) Pvt. Ltd, JM Financial Institutional Securities Ltd, Nomura Financial Advisory & Securities (India) Pvt. Ltd, Religare Capital Markets Ltd and SBI Capital Markets Ltd.
On 31 August, Goldman Sachs Singapore PTE and Intergrated Core Strategies Asia PTE Ltd sold 21.16 lakh and 32.13 lakh shares of Yes Bank, respectively, via a bulk deal at an average price of ₹ 1,365.38 a share. Ishares India Index Mauritius Co. bought 23.68 lakh shares at an average price of ₹ 1,365.60 a share.