Yes Bank shares were seen to be high today amid a weak Mumbai market. It rose to a 6.5% high to ₹81.55, outperforming flat broader markets.
Yes Bank said that it has raised ₹1,930.46 crore through qualified institutional placement (QIP) to fund its business expansion. The QIP opened on 9 August and closed on Wednesday, Yes Bank said in a regulatory filing. The share issuance resulted in a 9.96% stake dilution.
The Sensex was trading marginally in the green, recovering from early losses of 300 points, led by gains in banking stocks.
Yes Bank allotted 23.1 crores equity shares of face value of ₹2 each to at ₹83.55 per equity share. The QIP increases the bank’s total capital adequacy ratio to 16.2%. “The success of the QIP is extremely satisfying given the strong global and domestic headwinds and a credit environment beset with challenges,” said Yes Bank’s CEO Ravneet Gill.
Yes Bank’s successful QIP in a weak equity market had pushed the bank’s stock by 6% on Wednesday. The stock market was closed on Thursday on account of Independence Day. It was also reported that Yes Bank is planning to raise an additional $600 million from large investors to bolster its capital buffers, citing two people directly aware of the lender’s capital raising plans said.
Yes Bank, which is grappling with with a surge in doubtful loans, falling share price and a declining profit, had reported a net net profit of ₹114 crore in the April-June quarter, down from from ₹1,109 crore in the year-ago period. Yes Bank shares are down significantly from its 52-week high of ₹404, hit on 20 August, 2018.
Among the other Sensex stocks, Maruti was up 2%, Bajaj Finance 1.6%, and ITC 1.5%. IndusInd Bank, Axis Bank, and Kotak Mahindra Bank were among the other gainers.
Some selling pressure was seen in IT stocks, with TCS down 2%, Tech Mahindra 1% and HCL Tech 1%.
On Thursday, Prime Minister Narendra Modi reviewed the state of the economy with Finance Minister Nirmala Sitharaman to tackle a slowdown in many sectors. India’s economic growth slowed to 6.8% in 2018-19 – the slowest pace since 2014-15. The Sensex is down 8% from its June highs, with sentiment further dented by challenging global environment. US-China trade war, fears of global recession, currency war and emerging market selloff is further aggravating the sentiment.
On the currency front, the rupee pulled back to 71.26 against US dollar after falling to 71.47/dollar in early session.