The share price of Yes Bank declined for the second straight session, falling more than 16 percent on Monday after the bank fixed floor price of its proposed follow-on public offer (FPO) at Rs 12 per share and a cap of Rs 13 per unit.

Share Market Live

NSE

The stock plunged 16.86 percent to an intraday low of Rs 21.20 apiece on the BSE. In the last two sessions, the stock price has plunged more than 20 percent while in 6 months, it has declined over 49 percent on the BSE. At 11:05 am, the shares were trading 11.18 percent lower at Rs 22.65 apiece.

On Friday, the Capital Raising Committee of the Board of Directors of the Bank (CRC), approved the Floor Price for the Rs 15,000 crore FPO at Rs 12 per equity share with a cap price of Rs 13 per share.

A discount of Rs 1 per equity share will be given for the eligible employees of the bank bidding in Employee Reservation Portion. The committee also approved a minimum bid lot of 1,000 Equity Shares and in the multiples of 1,000 Equity Shares thereafter, the bank said in a regulatory filing.

Meanwhile, a report said that the market regulator Securities and Exchange Board of India (Sebi) may look into a large number of share transactions of the bank under the Securities Lending and Borrowing Mechanism (SLBM).

On July 9, investors borrowed 95,99,987 shares worth Rs 5.9 crore for an interest rate of around Rs 7 per share. Investors borrowed these shares for a one-month period, with settlement due on August 6, reported Moneycontrol.

These transactions took place a day prior to the announcement of the bank’s floor price for its Follow-on Public Offer (FPO). The Enforcement Directorate (ED) is expected to file the second prosecution complaint in the Yes Bank money laundering case on July 13, the report added.

First Published:Jul 13, 2020 12:15 PM IST