Yes Bank surges 10% on talks of capital infusion by TPG Capital, Advent

The stock rallied 13 percent in last 5 sessions, but in last year, it lost 75 percent of value amid rising bad debts and unexpected loss.

Shares of Yes Bank rallied 10 percent intraday on July 26 after a media report indicated that global private equity firms TPG Capital and Advent International could infuse fresh capital in the private sector lender.


The stock rallied 13 percent in last 5 sessions, but in last year, it lost 75 percent of value amid rising bad debts and unexpected loss. At 1252 hours IST, it was quoting at Rs 93.70, up to Rs 6.05, or 6.90 percent on the BSE.

"TPG Capital’s Indian private equity arm and buyout firm Advent International Corporation are among institutional investors that will infuse fresh capital into Yes Bank," Mint said quoting two people directly aware of the ongoing discussions.

“TPG and Advent International are the front runners. They will most likely invest around $350 million each," the report added.

The report said that Yes Bank's Chief Executive Ravneet Gill needs to urgently raise funds to shore up the lender's capital buffers and strengthen its ability to absorb losses.

Yes, Bank has been in talks with at least 76 firms, including PE funds, high net-worth individuals and investment managers over the past two months to seek more funds, it added.

After a dismal first-quarter performance by Yes Bank last week, CEO Ravneet Gill said concerns about the private sector lender's asset quality are over-done and that it plans to raise capital to refocus on growth.

Gill, in his interview with CNBC-TV18, said the capital raised would be "for growth purposes only, and not to heal the balance sheet."

Gill said the bank was looking to conclude the capital raising exercise in the second quarter of FY20. Gill did not specify the quantum of capital required for the mid-20s level of growth the bank is targeting but said that $1 billion of capital would see the bank through the medium term.

Gill's comments come after Yes Bank reported a near 91 percent plunge in year-on-year (YoY) net profit on the back of a sharp surge in provisions and lower other income.

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