Yes Bank shares slump nearly 5% ahead of board meeting today1 min read . Updated: 10 Dec 2019, 10:32 AM IST
- The board of the bank is scheduled to meet today to finalise its fundraising plans
- At 10 am, the stock had pared losses and traded 1% lower
New Delhi: Shares of private sector lender Yes Bank Ltd slumped nearly 5% in early deals on Tuesday, ahead of a board meeting later in the day.
Yes Bank shares have so far today touched a low of ₹53.40, down 4.9% from previous close. At 10 am, the stock had pared losses and traded 1% lower.
According to a Bloomberg report, the lender is likely to reject an offer from Canada’s Erwin Singh Braich and Hong Kong-based SPGP Holdings to contribute $1.2 billion towards fundraising. Late in November, the lender had said that a number of investors have evinced interest to buy Yes Bank equities worth a total of $2 billion.
The board of the bank is scheduled to meet today to finalise its fundraising plans.
Meanwhile, on 5 December, Moody's Investors Service downgraded Yes Bank's long-term foreign currency issuer rating to B2 from Ba3.
“Yes Bank's funding and liquidity compares weakly to other rated private sector peers in India, and could come under pressure, if the bank cannot strengthen its solvency in the next few quarters," Moody’s said in its report.
While, the lender has received offers from a number of investors to invest up to $2.0 billion through new equity capital into the bank, the ratings agency feels there are significant execution risks around the timing, price and regulatory approvals required.
In the last one month, shares of Yes Bank, India’s fourth largest private sector lender, have tanked 23%.