Shares of Yes Bank fell 5 percent on Monday as brokerages flagged concerns over investment by ‘lesser-known’ investors in the bank.

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Yes Bank, on Friday, had said that it will raise $2 billion in an issue of preferential shares to institutional investors and wealth managers.

The stock hit a low of Rs 63.10 in the early trade as against the previous close of Rs 68.30 on the BSE.

Hong Kong-based SPGP Holdings and Canadian family office of Erwin Singh Braich have committed $1.2 billion out of the total recapitalisation of $2 billion. London-based Citax Holdings has offered to invest $500 million, Yes Bank said.

The bank added that it will also get $120 million from a top tier US fund house whose name it will disclose early next week.

Global brokerage Macquarie raised concerns over the quality of investors saying that their names were not heard before.

The brokerage also doubted if RBI will approve investors wanting more than 10 percent for 85 percent of proposed capital.

“We doubt RBI is going to give approval to such investors who don’t pass muster with respect to RBI’s ‘fit and proper’ criteria. So uncertainty over capital raising remains,” Macquarie said.

The brokerage maintained ‘Underperform’ rating on Yes Bank’s stock with a Target Price (TP) of Rs 50/share.

Nomura maintained ‘Neutral’ rating on the stock with a TP at Rs 63/share.

It said that a large capital raise would address the ongoing concern but the road to recovery in Pre-Provisioning Operation Profit (PPoP) will likely be tough and gradual.

Jefferies also maintained ‘Underperform’ rating with TP at Rs 38/share. The brokerage also believes that of the total $1.8 billion investment, $1.7 billion is from two lesser-known off-shore investors.

“Both off-shore investors don't seem to have very positive reputations. We will wait for more clarification from next board meet,” Jefferies said.

At 9:35 am, shares of Yes Bank were trading 0.81 percent lower at Rs 67.75 on the BSE