Yes Bank has deferred its plans to raise USD 1 billion, citing extreme volatility in trading due to misinterpretation of new QIP guidelines.
“Due to extreme volatility during today’s trading day because of misinterpretation of new QIP guidelines, Yes Bank has been advised by its appointed merchant bankers to defer its proposed QIP,” it said.
Earlier in June, Yes Bank Managing Director and Chief Executive Officer Rana Kapoor had said the bank will raise USD 1 billion from overseas investors in the current fiscal.
The Cabinet Committee on Economic Affairs had approved Yes Bank’s proposal in May this year to increase foreign investment limit to 74 per cent, entailing FDI inflows of USD 1 billion (about Rs 6,637 crore).
“We have now headroom of about 32 per cent with the approval. There is no immediate need for raising capital but depending on market conditions, we can raise during the current fiscal,” Kapoor had said.
The increase in foreign investment limit provides the bank with significant enhanced flexibility in global capital raising.
Yes Bank stock closed 5.32 per cent down at Rs 1,330.65 on the BSE.