Yes Bank shares zoom over 24 pc on USD 1.2 bn investment buzz

Shares of Yes Bank on Thursday rallied over 24 per cent after the lender said it has received a binding offer for USD 1.2 billion (about Rs 8,500 crore) funding from an overseas investor. Shares of the private sector lender closed at Rs 70.45 apiece, up 24.03 per cent. Intra-day, the shares zoomed 34.94 per cent to Rs 76.65 apiece on the BSE.

On the National Stock Exchange (NSE), the scrip settled 23.77 per cent up at Rs 70.30. During the day, the stock soared 38.55 per cent to Rs 78.70. "Yes Bank is badly in need of capital for growth. Absence of positive news on this front led to bear hammering in the stock taking the stock below Rs 30. It is natural that investors are finding it attractive to invest in the stock for a stake. Further developments will depend on who the investor is and the regulatory approvals," V K Vijaykumar, chief investment strategist, Geojit Financial Services, said.

The bank's market capitalisation increased by over Rs 3,500 cr to Rs 17,967.09 cr. "The bank would like to inform that it has now received a binding offer from a global investor for an investment of USD 1.2 billion in the bank through fresh issuance of equity shares," it said on Thursday.

Last month, the bank had informed stock exchanges that it had received strong interest from multiple foreign as well as domestic private equity and strategic investors for the capital raise and remains firmly on course to raising growth capital subject to necessary approvals. The troubled private sector lender had said that it was looking for capital either from a private equity investor or a strategic investor or family office.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)