Yes Bank plunges another 6% as lender defers $1 billion QIP

NEW DELHI: Shares of Yes Bank plunged 6 per cent in Friday’s trade after the bank deferred its proposed $1 billion qualified institutional placement, citing ‘extreme volatility’ in the previous session.

The stock plunged 6.03 per cent to hit a low of Rs 1,250 on BSE. This was in addition to a 5.32 per cent fall on Thursday after investors gave a thumbs down to the QIP announcement.

The bank had set a floor price of Rs 1,371 for the QIP and had said that it might, at its discretion, offer a discount of up to 5 per cent on the floor price to investors. Following poor market response, the lender said post market hours that the volatility in the stock price was because of misinterpretation of new the QIP guidelines.

It said it had been advised by merchant bankers to defer the proposed QIP.

In a telephonic interview to Reuters, Yes Bank Chief Executive Rana Kapoor said the sale would be relaunched at a later date but 'definitely before' March 2017.