Yes, No, Yes--confusion over QIP leads to fall of Yes Bank

The decision to come up with the QIP (Qualified Institutional Placement) for its institutional placement has hit the share prices of the bank hard. On Thursday, September 8, shares of Yes Bank fell 5.32 percent to Rs 1,330.65 on BSE, while the Sensex advanced 0.4 per cent to 29,045.28 points. Company informed the bourses that, “Due to extreme volatility during today’s trading day because of misinterpretation of new QIP guidelines, Yes Bank has been advised by its appointed merchant bankers to defer its proposed QIP,”

Bank plans to raise 6642 crores through QIP. Bank intends to use the net proceeds of the issue for meeting capital requirement under Basel III norms and for ensuring adequate capital to support growth and expansion.  According to some media houses, the bank would approach capital market regulator Securities and Exchange Board of India (SEBI) on the confusion over the new QIP guidelines that led to the deferment.

Shares of the bank on September 9, opened at Rs 1260, down by 5 per cent.  In the last 5 days scrip has fallen by 8 per cent. Fifty-two-week high low of the scrip stands at Rs 1450/632.