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Business News/ Markets / Stock Markets/  Rakesh Jhunjunwala buys Yes Bank shares worth 87 crore
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Rakesh Jhunjunwala buys Yes Bank shares worth ₹87 crore

Jhunjunwala bought 12.95 million shares of the lender at a price of ₹67.1 apiece, data shows
  • The investment in Yes Bank's shares by Jhunjhunwala comes after the lender announced last week that it has received offers of $3 billion from potential investors
  • Photo: Aniruddha Chowdhury/MintPremium
    Photo: Aniruddha Chowdhury/Mint

    MUMBAI : Ace stock market investor Rakesh Jhunjunwala on Monday bought Yes Bank shares worth 87 crore, according to data from stock exchanges.

    Jhunjunwala bought 12.95 million shares of the lender at a price of 67.1 apiece, data shows.

    The investment in Yes shares by Jhunjhunwala comes after the lender announced last week that it has received offers of $3 billion from potential investors, including the recently-announced $1.2 billion from a North American family office.

    On Friday evening, Yes Bank chief executive Ravneet Gill said that the bank has non-binding offers from two domestic mutual funds, six global private equity firms, two Indian financial investors and two Indian family offices. While the two domestic MFs and global PE firms have made an offer of $1.5 billion, the offer from four Indian investors is about $350 million.

    The bank hopes to close the fund-raise before December, he added.

    The proposed capital infusion, the bank would not require capital for the next two years, growing at a high-teen rate, said Gill. The bank which reported a common equity tier 1 (CET1) ratio of 8.7% in the September quarter of FY19 will see an around 260 basis point (bps) jump in capital adequacy ratio following the proposed infusion.

    Last week, Yes Bank reported a net loss of 600 crore for the three months to September primarily owing to a one-time deferred-tax asset (DTA) adjustment of 709 crore.

    The bank had posted a net profit of 965 crore in the same period last year. The bank’s loss was higher than 402 crore estimated by a Bloomberg consensus estimate of 17 analysts. Even without DTA adjustment, the bank’s operating performance was weaker than the same period last year.

    Yes Bank’s operating profit was also down 38% year-on-year (y-o-y) to 1,458 crore in the quarter under review.

    On Monday, Yes Bank shares closed at 66.1 per share, down 0.75% on the BSE.

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    ABOUT THE AUTHOR
    Swaraj Singh Dhanjal
    " Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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    Published: 04 Nov 2019, 08:02 PM IST
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