Yes Bank shares rose by 4.6%, 30% stake in Rosa Power
Yes Bank has been in the process of raising capital from strategic investors to get over liquidity issues and accumulation of toxic assets
Mumbai: Shares of Yes Bank rose by 4.6% on Wednesday afternoon after the embattled private sector lender invoked pledge and acquired 30% of Rosa Power Supply Company Ltd.
In a regulatory filing at stock exchanges, Yes Bank said it has acquired 12.73 crore equity shares or 29.97% of the stake in Rosa Power Supply, a wholly-owned subsidiary of Anil Ambani-led Reliance Power Ltd.
The company operates Rosa Thermal plant of 1,200 megawatt at Shahjahanpur in Uttar Pradesh. It generated 4,341 million units for the year ended March 31, 2019 and clocked a turnover at Rs 2,414 crore.
Yes Bank has been in the process of raising capital from strategic investors to get over liquidity issues and accumulation of toxic assets.
On Tuesday, the bank said it will seek shareholders' nod to raise Rs 10,000 crore via a combination of equity and debt. The decision will be taken at its extraordinary general meeting scheduled for February 7.
"The proposal to raise capital up to Rs 10,000 crore is expected to provide the bank necessary platform for meeting growing requirements of its expanding business. Importantly, higher capital also assumes greater significance as it provides the buffers to absorb higher provisioning requirements during asset quality cycles," it said.
Yes Bank's stock has plunged by nearly 80 per cent in the past year. At 12 noon on Wednesday, the scrip was trading 4.67% higher at Rs 40.35. At 10:15 am, it was down by 3.6%.