Yes Bank Shares Jump 7% Amid Fund Raise Talks, Earnings Delayed By A Month

Yes Bank said it had received non-binding expressions of interest from JC Flowers, Tilden Park Capital Management, OHA (UK) and Silver Point Capital.

Yes Bank Shares Jump 7% Amid Fund Raise Talks, Earnings Delayed By A Month

Yes Bank said it was in talks with potential investors for a cash infusion

Highlights

  • Yes Bank says in talks with potential investors for cash infusion
  • Shares jump nearly 7% in intraday trade
  • Private sector lender delays release of financial results by a month
Mumbai:

Troubled private sector lender Yes Bank said it was in talks with potential investors for a cash infusion, sending its shares up almost 7 per cent in Thursday trade. Yes Bank also said it will delay disclosing its October-December earnings by at least a month. 

Yes Bank, in a regulatory filing late on Wednesday, said it had received non-binding expressions of interest from JC Flowers, Tilden Park Capital Management, OHA (UK) and Silver Point Capital.

"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," the bank said in the filing.

The earnings delay comes as the bank fends off criticism of its corporate governance levelled by a former board member. It is also contending with a rise in bad loans and, for two quarters, has been trying to raise $2 billion in fresh capital.

Yes Bank shares jumped as much as 6.96 per cent to Rs 37.65 apiece on the BSE during Thursday's session compared with their previous close of Rs 35.20. 

At 11:51 am, the Yes Bank stock traded 6.39 per cent higher at Rs 37.45 apiece on the bourse, outperforming the benchmark S&P BSE Sensex index which was down 0.46 per cent.

Yes Bank, whose shares have slumped more than 85 per cent in the last 10 months, recently appointed global investment bank Cantor Fitzgerald headed by former Deutsche Bank chief executive Anshu Jain to ramp up its effort to raise capital.

Last month, Yes Bank said it had rejected a $1.2 billion investment offer from Canadian investor Erwin Singh Braich and Hong Kong-based SPGP Holdings - an offer about which many analysts expressed doubt.

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