YES Bank’s shares moved 15 percent higher to RS 17.46, and reached the highest level since January 2021, in BSE in intra-day-to-day trade. The stock of private sector lenders exceeded the previous highest Hospital 17,55 which was touched on January 25, 2021.
In the last three days of trading, the bank rose 20 percent after the bank announced to collect equity capital of around 1.1 billion (8,900 crore) from funds affiliated with two global private equity investors – Carlyle and Advent International, with each investor potential Obtain those who acquire up to 10 percent of shares in lenders.
Yes the bank will raise funds through a combination of around $ 640 million (RS 5,100 crore) in shares and around $ 475 million (RS 3,800 crore) in a share warrant. This will offer 3.69 billion shares for Affiliate Carlyle Group and Advent.
“The bank proposes to issue 3,700 million equity shares on the basis of preferences in hospital 13.78 per share and around 2,570 million warrants that can be converted into equity shares in hospital 14.82 per warrant, adding 8,900 crore hospitals to the bank’s equity capital base,” Yes, the bank is the bank, yes, yes, yes, yes, yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes it is.
Management says that the increase in capital will increase the capital adequacy of YES Bank and help the objectives of sustainable growth in their long -term medium. After being approved, this will be one of the largest private capital increases by Indian private sector banks.
Increased capital is subject to the approval of shareholders at the EGM Bank, which will be held on August 24, 2022 and the approval of relevant regulations or laws.
Analysts in the Securities box believe that developments in banks are quite positive but need to be seen as investment ideas.
“At this point, almost all medium banks seem to be in the same situation. Every bank comes out of the challenges of the quality of each asset caused by the Covid-19 or the challenges of their own emissions. Almost all of these banks have improved them growth machines and aimed at Faster the normalization of the long -term return ratio, “said the broker company.
However, yes the bank is also in the same situation without a strong collection of profits available. Nevertheless, analysts expect long-term low credit costs if recovery from poor loans after the sale of arc is better than waiting.
Meanwhile, in the past month, YES Bank stock has increased almost 35 percent, compared to the 10 percent increase in S&P BSE Sensex. This has recovered 65 percent of the lowest 52 weeks RS 10.51 which was touched on August 23, 2021.
At 12:35 pm; Yes, the bank is traded 13 percent higher in RS 17.20 behind the weight volume. 497 million shares of combined equity changed hands in NSE and BSE. In comparison, S&P BSE Sensex dropped 0.22 percent to 57,989 points.
