After reports emerged that some European entities evinced interest to invest up to $1 billion in YES Bank, the bank’s shares rose nearly 5 percent on Tuesday. On Monday, sources told CNBC-TV18 that some European investors; with a large exposure in Russia, and Europe; were looking to invest in YES Bank.

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The investment banking sources said that discussions in this regard was at the advanced stage. Besides that, London-based Citax Holdings has already set aside $500 million in an escrow account, they said.

Prakash Pandey, MD & CEO at Plutus Advisors said: “YES Bank shares rose today on the hope of fundraising and because of short covering in the options market for December expiry.”

Meanwhile, YES Bank said that Canadian industrialist Erwin Singh Braich’s $1.2 billion binding offer continued to be under discussion even as reports suggest that the Reserve Bank of India (RBI) might not find merit in the bid.

The bank was on the lookout for institutional investors to raise funds for long. Earlier, YES Bank CEO and MD Ravneet Gill said the bank was confident of raising more than $500 million in the first round of funding and rest of the required money in the B and C rounds. The bank was looking to raise about $2 billion from investors. However, in the recent weeks its fundraising bid hit many roadblocks. Due to the uncertainty over fundraising, the bank’s share has witnessed a lot of volatility in the past one year.

After hitting a day’s high of Rs 52, at 3.20 pm the share was trading at Rs 51.25 or a rise of 3.25 percent on the BSE. The share's 52 day high is Rs 285.9 (on April 3) and low is Rs 29.05 (October 1).

First Published:Dec 24, 2019 3:24 PM IST