The share price of YES Bank rose 5.68% intraday on Thursday's early session after the private lender announced that it has received non-binding expressions of interest ("EOis") from several prominent investors. These financial firms who have submitted 'non-binding' expressions of interest are JC Flowers & Co, Tilden Park Capital Management, OHA (UK) (part of Oak Hill Advisors) and Silver Point Capital. The private lender has also said it'll release the December quarter financial results by March 14, 2020.
The rise in the price of the stock was despite rating downgrade by India Ratings due to continued delay and inconclusive quantum of the anticipated equity infusion in the bank. India Ratings and Research (Ind-Ra), a part of Fitch Group, on Wednesday downgraded YES Bank's long-term issuer rating to 'IND A-' from 'IND A' while maintaining it on 'Rating Watch Negative' (RWN).
As per the filing, the lender and its financial advisors are currently in discussions with these investors on the commercial terms, including pricing, of their investments which, it may be noted, will be subject to certain conditions and receipt of requisite approvals, including regulatory approval.
Following the update, shares of YES Bank opened with a gain of 4.97% today touched an intraday high of Rs 37.2, rising 5.68% against the last close of Rs 35.20 on BSE.
The mid-cap stock has gained after 3 days of consecutive fall. The stock has outperformed the 'Banks' sector on BSE by 7.53%. The share has lost 3.63% in one week, 11% in one month, 20% year-to-date and 78% in the last year's period. Market capitalisation of the mid-cap stock stood at Rs 9,322 crore. Market depth data suggested 60% buying against 40% selling. Volume-wise, 45.3 lakh and 788 lakh shares are changing hands on BSE and NSE today.
The bank and its management are deeply engaged with the exercise outlined above and which includes extensive work with its investment bankers, legal and accounting advisors, the investors and the independent vendor/legal due diligence commissioned for investors, it added.
"Given that the current capital raising process has the Bank' s fullest attention, it would like to inform the exchanges that it will publish its unaudited financial results for the quarter and nine-month period ending December 31, 2019, on or before March 14, 2020," YES Bank, in a late-night filing on Wednesday.
This would, however, exceed the 45-day period from the end of the relevant quarter as stipulated under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In December, the bank in a filing to the bourses disclosed that its board was willing to favourably consider London-based Citax Holdings' $500 million offer, adding that it would continue to evaluate other potential investors to raise capital up to $2 billion.
Last month, YES Bank rejected $1.2 billion investment offer made by Canadian industrialist Erwin Singh Braich/SPGP Holdings. Currently, YES Bank share price is quoting Rs 36.95, rising 1.75 points or 4.97 per cent apiece on BSE.
Currently, YES Bank share price is quoting Rs 36.95, rising 1.75 points or 4.97% apiece on BSE.
Share Market LIVE: Sensex slips 100 points, Nifty at 12,166; YES Bank rises 4%