Shares of YES Bank are making headlines today following the announcement that the bank plans to raise funds through the issuance of debt securities. The Board of Directors has approved this fundraising initiative. On Tuesday, YES Bank’s stock remained stable, closing at Rs 24.02, slightly up from the previous close of Rs 23.95 on the Bombay Stock Exchange (BSE). The bank’s market capitalization stands at Rs 75,268 crore. A total of 144.67 lakh shares were traded, resulting in a turnover of Rs 34.93 crore on the BSE.
Over the past year, YES Bank’s stock has surged by 50.31%, and it has increased by 6.10% in 2024. The stock’s one-year beta is 1.3, indicating high volatility. On the technical front, the relative strength index (RSI) of YES Bank’s stock is at 56, suggesting that the stock is neither overbought nor oversold. Additionally, the shares are trading above the 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages.
YES Bank’s fundraising will be conducted through the issuance of debt securities in both Indian and foreign currencies. The options for these securities include non-convertible debentures (NCDs), bonds, and Medium Term Notes (MTNs), among others. The bank’s Board of Directors is scheduled to meet on June 25, 2024, in Mumbai to discuss and approve a resolution for this fundraising plan.
The bank intends to present a special resolution for this potential fundraising in its upcoming Annual General Meeting (AGM) notice. This move is in accordance with the provisions of the Companies Act 2013 and its associated rules. The approval of the fundraising plan demonstrates the bank’s strategy to strengthen its financial position and support its growth initiatives.
The decision to raise funds through debt securities is part of YES Bank’s broader strategy to diversify its funding sources and enhance its capital base. By issuing debt securities, the bank aims to tap into both domestic and international markets to secure the necessary capital. This approach will provide the bank with the flexibility to manage its financial resources effectively and support its long-term objectives.
Overall, YES Bank’s fundraising plan is a significant development that underscores the bank’s commitment to maintaining a strong financial position and pursuing growth opportunities. The successful execution of this plan will enable the bank to strengthen its capital base and support its strategic initiatives in the coming years.
