YES Bank shares tumbled by 4 per cent and lost close to ₹2,250 crore in market capitalisation on Friday after the company announced the deferral of a qualified institutional placement worth $1 billion.
Issue period confusionThe company’s stock price fell below the floor price of the QIP on Thursday following confusion over the time period for which the QIP needs to be open. Based on the formula given by the Securities and Exchange Board of India, the floor price for the issue was set at ₹1,371.84 a share while the price band stood at ₹1,350-1,410. The stock had closed down around 5 per cent on Thursday at ₹1,328.25.
According to SEBI’s new guidelines on QIP, the issue has to be open for three days even if the issue is oversubscribed on Day 1. The company explained that the QIP had been deferred on advice by its appointed merchant bankers.
The stock had jumped 4 per cent on September 6 before the company reported to the stock exchange that it met analysts/institutional investors on August 30-31. But post that, the company’s market capitalisation declined by around ₹7,000 crore during September 7-9.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.