Yes Bank shares jumped 10% lower circuit on Monday. It is reported after the new shares are allotted in the FPO or follow on public offer. The lower circuit price rate was Rs.12.30.
The combined equity share was 198.51 million. This amount changed many hands until 9:17 am. The amount of pending sales orders was 360 million. This is the report of exchange data.
Yes Bank’s equity share rate is 12,504 million. This rate is admitted as well as listed for trading. Yes Bank can exchange this rate from 27th July 2020. The rank of these shares and the existing equity shares are almost the same according to BSE. They confirmed it in their release day.
The private sector lender issued share. The price of each share was Rs 12, and they raised over Rs 1500 crore just through FPO.
After this FPO prize announcement, the stock of the private sector bank of new generation started falling. Within 12 days of trading, the scrip was down for at least for 11 days. Previously it was Rs 26.65. This rate is 54% down now.
According to Yes Bank, they will use the FPO funds on the expansion and growth of the company. They will use this fund to enhance its capital adequacy ratio or CPR and solvency. Apart from that, they will also evolve regulatory requirements.
Yes Bank has already faced deposit withdrawal rules in the last two quarters. Now they have to perform a challenging task of rebuilding deposits and CASA. It will take a longer time than before.
According to Moody, the rating agency, Yes bank has raised positive capital. The injection of fresh equity capital is Rs 15,000 crores. It’s almost 2 billion.
So the Bank has already started improving its financial strength. According to Moody, this Bank will soon gain the confidence of their depositors.