Yes Bank on Tuesday postponed the decision to approve or decline the binding offer of $1.2 billion -- 60 per cent of the total capital the bank aims to raise -- submitted by mysterious investor Erwin Singh Braich.
Yes Bank, however, after its 5-hour board meet on Tuesday said that it is willing to "favourably consider the offer of $500 million of CitaxHoldings and Citax Investment Group and the final decision regarding allotment to follow in the next board meeting.."
On Erwin Singh Braich's offer the bank said "The binding offer of US$1.2 billion submitted by Erwin Singh Braich/SPGP Holdings continues to be under discussion."
Fearing an adverse outcome of the board investors distanced themselves from the bank on Tuesday resulting in its stock price losing over 10 per cent to Rs 50.55 a share. A spike in volumes (trading in a stock) was also seen in Yes Bank shares ahead of the crucial board meet today.
A lack of enthusiasm was seen among investors after bank last month declared the list of investors who have offered to invest in Yes Bank. Investors doubt over Mr Braich stemmed from the fact that he has been involved in a number of bankruptcy, lawsuits and failed business deals.
Besides, the lack of information on Mr Braich, who seems to steer the revival of the struggling Yes Bank, has also troubled investors off-late.
Yes Bank has also been the most active stock for the past consecutive months owing to divergent news flow.
Investors that the bank informed last month included Capital International which committed to invest at least $120 million, Discovery Capital, $50 million, Ward Ferry, $30 million, Erwin Singh Braich, $1.2 billion, Rakesh Jhunjhunwala, $25 million, and Aditya Birla Family Office, $25 million.