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Yes Bank Share Price: YES Bank plunges 20%, takes losing streak to 4th day

NEW DELHI: YES Bank stock nosedived 20 per cent in Thursday’s trade, taking its losing streak to the fourth straight session. The scrip had huge sell orders in the Rs 14.60-14.80 range on BSE, but no buyers.

The stock has been on a falling spree ever since the bank concluded its Rs 15,000 crore follow-on public offer (FPO), even as Moody’s feel the capital raising by the bank is credit positive.

Moody’s said the fund raising would strengthen the core capital and loss-absorbing buffers, besides reducing default risks for creditors.

The stock fell 20 per cent to hit a low of Rs 14.60 on BSE. With Thursday’s losses, the scrip has fallen 26 per cent in the four sessions.

YES Bank was near bankrupt in March and was rescued by a Reserve Bank-led bailout plan under which SBI picked up 49 per cent equity in the once-storied private sector lender.

“Successful equity raising reflects YES Bank’s regained access to external market funds, which in turn shows its improving financial strength and will help support depositor confidence,” Moody’s said on Tuesday.

The FPO had attracted bids for 8,47,12,49,000, which was 93 per cent of the issue size of 9,09,97,66,899 shares, data compiled from NSE suggests. For an FPO to sail through, a minimum of 90 per cent of the issue needed to be subscribed.

The bank had earlier entered into an underwriting agreement with SBICap, wherein the latter agreed to underwrite Rs 3,000 crore at a price equal to or the lowest end of the price band.

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