Yes Bank Hits 10% Lower Circuit On Listing Of FPO Shares

Shares of Yes Bank were locked at the lower circuit of 10 per cent at Rs 12.30 on the BSE after the listing of fresh shares that were allotted in the follow-on public offer (FPO). Yes Bank, the country's seventh largest private sector lender by market capitalisation had raised Rs 15,000 crore by issuing shares at the price of Rs 12 per share.

"12,504 million equity shares of Yes Bank are listed and admitted for trading on the exchange with effect from July 27, 2020. These shares rank pari-passu with the existing equity shares of the company," the BSE said in its release on the Yes Bank FPO listing.

Yes Bank has already announced that the funds raised through FPO will be used for growth and expansion, including enhancing its solvency, capital adequacy ratio and evolving regulatory requirements.

Yes Bank was on the brink of collapse earlier this year due to its past history of providing easy loans, which ended up as non-performing assets - or bad loans - on its books. Since then, SBI has stepped in to acquire a stake in the private lender and to keep it afloat.

The shares of the private sector bank have fallen consistently since the pricing announcement of the FPO. The stock has shed as much as 54 per cent from the level of Rs 26.65 touched on July 9, 2020.

The BSE Sensex was quoting at 37,908.80, higher by 222 points or 0.5 per cent and the NSE Nifty was at 11,127.30, up 72 points or 0.6 per cent at the time.