Yes Bank plunges 10% on denying reports of strategic investment by Microsoft

Shares of Yes Bank fell 10 percent intraday on October 9 after the lender denied media reports saying it is in talks with three technology companies including software major Microsoft for a strategic investment.

“The top management of bank held discussions with Microsoft as part of the bank’s ongoing strategy to sell a minority stake to a global tech company,” Mint reported, quoting unnamed sources.

The private lender could sell 15 percent through fresh equity issuance and such a stake sale could help Yes Bank gain Rs 2,000 crore, the report added. The stock had rallied 8 percent after the news on Monday.

“The bank is not aware of the source, which resulted in the abovementioned news item and as a matter of policy, the bank would not like to comment on such article,” the private sector lender said in its BSE filing.

The bank further said in the usual and ordinary course of its business, it continued to explore various means of raising capital/ funds through the issuance of securities to a diverse set of investors, in order to meet its business/regulatory requirements, subject to compliance with prescribed procedures and receipt of statutory/regulatory approvals.

The lender has been exploring different options for raising $1.2 billion.

The stock was quoting at Rs 43.10, down Rs 2.50, or 5.48 percent on the BSE at 1222 hours.

[“source=moneycontrol”]