Yes Bank shares have a 10 per cent lower circuit on Monday. The stock fell nearly 10 per cent to Rs 12.30 on the BSE. The share of Yes Bank’s Follow on Public Offer (FPO) has been listed in the stock market today. After the commencement of business at FPO, Yes Bank declined 10 percent. Explaining that since the announcement of the floor price of Yes Bank’s follow on offer (FPO), the shares of the bank have continued to fall. On Thursday too, a 20% lower circuit was put in it.
The floor price of the bank’s FPO was fixed at Rs 12 per share, which was at a 60 per cent discount to the market price of 9 June. Since the floor price was fixed, the shares of Yes Bank have fallen by about 59 percent. Yes Bank’s Follow on Public Offer (FPO) has been the largest FPO in the country so far. This issue of Rs 15,000 crores got subscription of more than 95 percent i.e. Rs 14,267 crores. This means that through this offer, the bank has raised a new share capital of Rs 14,267 crore from the market.
On March 13 this year, the government approved Yes Bank’s Rescue Plan with the support of SBI. SBI, HDFC, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC Bank had invested Rs 10,000 crore in Yes Bank under this plan. SBI took a 48.3 percent stake in Yes Bank with an investment of Rs 6050 crore. In March, Yes Bank’s AT1 bond worth Rs 8415 crore was removed from the balance sheet under the Rescue process.
Yes Bank shares made their alltime high on 20 August 2018 and the stock reached a price of Rs 404. But since 20 August, there has been a steady decline in the stock. On 27 July 2020, the stock came to a price of Rs 12.30. That is, the record high has come down by about 97 percent.
There have been many issues with Yes Bank for the last few months. The biggest loss to the bank was due to uncertainty regarding management. At the same time, the bank’s exposure is in some companies with which cases of financial fraud have come up. At the same time, some questions were also raised about the quarterly results of the bank.