CEO Ravneet Gill said that major European financial institutions, who are well-regulated, have shown interest in buying a stake in the bank
Shares of YES Bank extended rally for the second straight session and climbed 5% in the early trade on Friday after the lender’s CEO Ravneet Gill said that major European financial institutions, who are well-regulated, have shown interest in buying a stake in the bank. Gill said the bank would soon reveal their names. He assured that since these investors were well-regulated, no one would have any concerns regarding their ability to invest in the bank.
Boosted by the CEO’s comment, YES Bank shares surged 5% to touch the day’s high at Rs 47.65. YES Bank share was the top gainer on the bourses BSE and NSE today, with 53.2 lakh and 820.2 lakh shares changing hands on BSE and NSE counters, respectively. YES Bank shares are trading lower than 5, 20, 50, 100 and 200-day moving averages.
On Thursday, YES Bank shares closed 5.96% higher at Rs 45.35 on the BSE, ending its 5-days losing streak. The stock has overall gained over 9% in the last two days of gain.
“Large European financial institutions regulated by the Financial Conduct Authority have shown an interest in the bank,” Ravneet Gill told Business Standard, adding that the talks were at an advanced stage and soon after entering into a binding agreement, Yes Bank would make the final names public.
Gill further indicated that the lender may not issue shares to family offices, thereby putting an end to speculations of Canada’s Ervin Singh Braich, GMR Group and Aditya Birla Family Office getting a nod from the bank.
Gill said the final investors would easily get a go-ahead from the Reserve Bank of India as they were “fit and proper”.
Earlier on Tuesday, the Mumbai-based lender had told the stock exchanges that its board could consider investment offer of $500 million from Citax Holdings and Citax Investment Group, adding that it would continue to evaluate other potential investors, including SPGP Holdings and Canada’s Erwin Singh Braich, to raise more capital.
Amid capital raising concerns of the cash-strapped lender, the shares of YES Bank has deteriorated 16% in one week, 31% in one month and nearly 74% year-to-date.