Yes Bank shares zoom over 38% after lender receives $1.2 bn funding proposal from overseas investor

Shares of Yes Bank on Thursday rallied over 38 percent after the lender said it had received a binding offer for $1.2 billion (approximately Rs 8,500 crore) funding from an overseas investor. Shares of the private sector lender zoomed 34.94 percent to Rs 76.65 apiece on the BSE in intra-day trade. However, the stock erased some gains and ended the day at Rs 70.45, up 24 percent.

YES BANK extends gains after co says has received a binding offer worth $1.2 bn from a global investor pic.twitter.com/wz0YPZFNqD

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On the NSE, the stock soared 38.55 percent to Rs 78.70 in intra-day trade and closed at Rs 70.30, up 23.77 percent. “The bank would like to inform that it has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares,” it said on Thursday. [caption id=“attachment_5595711” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The fund raise is subject to regulatory approvals and bank’s board and shareholders approvals, it said in a regulatory filing. “The bank also continues to be in advanced discussions with other global and domestic investors,” it said. 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. Earlier in August, the bank had raised Rs 1,930.46 crore through a qualified institutional placement to fund its business expansion. (With PTI inputs)