Rakesh Jhunjhunwala may not invest $ 25 million in Yes Bank; Bank’s Stock Down by Over 3%

Yes Bank Capital Fund Raising

Indian billionaire Rakesh Jhunjhunwala may remove his name from the list of investors of Yes Bank as he plans on withdrawing his investment of $ 25 million. It is said that the reason he will be shelving his plan is the uncertainty in Yes Bank’s Capital raising plans.

The owner of Rare Enterprises earlier had planned to invest $ 25 million in Yes Bank via Rekha Jhunjhunwala’d (his wife) family office. It is expected that, today, Jhunjhunwala will release an official statement vis-à-vis the investment.

According to a source “the logic behind not subscribing to Yes Bank’s preferential allotment by Jhunjhunwala is that it is higher than the prevailing market price”. Adding that “there is also a lock-in period”. Jhunjhunwala can buy the lender’s shares from the open market at a lower price, without any lock-in period, by this logic Jhunkhunwala will be at a loss, relatively, if he goes with Capital Raising.

Read More Articles

Yesterday, Yes Bank’s share closed at Rs. 56.2 on BSE (Bombay Stock Exchange), and the preferential offer (Offer price at which Yes Bank wants to raise funds) is prices at Rs. 78. Today morning, around 9:40 AM Yes Bank’s share price touched Rs. 54.45, down by Rs. 1.75 (3.21%).

Additionally, Yes Bank is rumoured to reject a $ 1.2 billion investment in Capital Raising by Erwin Singh Braich, Canada, and SPGP Holdings of Hong Kong according to reports.

Though, Yes Bank has called both these reports ‘purely speculative’.

Today, Yes Bank’s board is expected to discuss the $ 2 billion Capital Raising in a meeting. Last month, Yes Bank finalised its plan on fund raising.

Read the article here: Yes Bank to finalise Fund Raising Plan

Subscribe to get the best stories into your inbox!
Xploringindia is a administrator who has a keen interest in politics, fashion, and lifestyle. She is a post-graduate in Economics and loves to listen to classic old Hindi songs and travel to new places in her leisure time. Her writing is well researched, covering important aspects and core of the topic covering crucial points.
Leave a Reply

Your email address will not be published. Required fields are marked *

Editor's choice
Jet Airways To Take Flight Again From Early 2022, Company Starts Hiring Process
Bombay HC Dismisses Kangana Ranaut's Plea Seeking Quashing Of Defamation Case By Javed Akhtar
Financial Tasks You Must Complete Before 30 September 2021
Paytm Money Launches “WealthBaskest” An Investment Advisory Marketplace
Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.