YES Bank jumps 5% as lender gets EoIs from JC Flowers, Silver Point

YES Bank gained over 5 per cent to Rs 37.20 on the BSE on Thursday after the bank said it is in talks with potential investors, including J.C. Flowers and Silver Point Capital, for raising equity capital.

In a filing to the BSE, the lender said it had received non-binding expressions of interest (EoIs) from several investors including J.C. Flowers & Co, Tilden Park Capital Management, OHA (UK) LLP (part of Oak Hill Advisors), and Silver Point Capital.

The bank and its financial advisors are in discussions with these investors on commercial terms. The investments, including pricing and size of the stake to be acquired, are all subject to regulatory approval, the bank said.

YES Bank said it will delay the announcement of its December quarter (Q3) results due to the ongoing talks with potential investors.

"The current capital raising process is engaging the bank’s attention and hence it will publish its results for Q3 and the nine months ended December 31, on or before March 14, 2020," the bank said in the BSE filing, adding that this exceeds the 45-day period from the end of the relevant quarter to announce results, as stipulated by the Securities and Exchange Board of India.

At 9:36 AM, the stock was trading 4.26 per cent higher at Rs 36.70 as compared to 0.15 per cent decline in the benchmark S&P BSE Sensex. A combined 3.5 crore shares have changed hands on the NSE and BSE so far

Meanwhile. India Ratings has downgraded YES Bank’s long-term issuer rating to ‘A-’ from ‘A’, on account of the continued delay and inconclusive quantum of the anticipated equity infusion. It remains on Rating Watch Negative (RWN). This could adversely impact the bank’s franchise and potentially create challenges on asset and liability side, the rating agency said in a statement.

Yes Bank