- Lender’s shares post the steepest decline in 13 months
- The stock to stay ‘under pressure’ after sale delay: Elara
Yes Bank Ltd., the best-performing stock on a gauge of Indian lenders, deferred a $1 billion sale to large investors after its shares plunged the most since August last year.
The shares tumbled 5.2 percent to 1,328.25 rupees in Mumbai, the worst performer on the S&P BSE Bankex index. The bank, led by Chief Executive Officer Rana Kapoor, had fixed a band of 1,350 rupees to 1,410 rupees for the sale to institutions that began Wednesday, according to a term sheet obtained by Bloomberg.
Yes Bank cited “misinterpretation” of new rules for the so-called qualified institutional placement as reason for the delay. The move comes after eight companies successfully used this route to raise 8.8 billion rupees ($133 million) this year, data compiled by Bloomberg show. The lender’s shares may remain “under pressure,” said Rakesh Kumar, an analyst at Elara Securities India Pvt. in Mumbai
"Pulling off a QIP after bids have been placed is a bit odd,” he said. “Investors are confused about the reasons for the deferment. Some investors may prefer to book profits.”
The shares, which reached a record on Tuesday, have surged 83 percent this year.