Yes Bank Says It Continues To Explore Various Means Of Fundraising
Yes Bank Ltd. on Monday said it continues to explore various means of fundraising to meet its business requirements.
This, after the exchanges sought from Yes Bank clarifications on a report that said the private sector lender is in talks with Microsoft Corp. and two other tech companies to bring one of them on board as a strategic investor.
"The bank in the usual and ordinary course of its business continues to explore various means of raising capital/funds through issuance of securities to diverse set of investors, in order to meet its business/regulatory requirements," Yes Bank said.
"The bank is not aware of the source, which resulted in the news item and as a matter of policy, the bank would not like to comment on such an article," it added.
On Oct. 3, Yes Bank's Chief Executive Officer Ravneet Gill said he expects to complete raising as much as $1.2 billion “much sooner than the market expects". On the same day, Group President Rajat Monga resigned. Share price of the lender had risen 32.97 percent on that day. The stock had been on a declining trend and dropped 24 percent in the last 30 days due to promoter stake sales. Co-founder Rana Kapoor and his holding firms Morgan Credits and Yes Capital had over the past couple of weeks cut their stake in Yes Bank to now less than 1 percent.
In August, the bank had raised Rs 1,930.46 crore through an qualified institutional placement to fund its business expansion, but further fundraising talks with private equity investors had hit an information roadblock, BloombergQuint cited three people as saying in an Aug. 27 report.
On Monday, Yes Bank shares rose 8.19 percent to Rs 45.60 apiece on the BSE while the benchmark Sensex declined 0.38 percent to end the day at 37,531.98 points.