A piece of good news has come out for the old investors of Yes Bank Limited. Let’s find out what is the good news as we go ahead with the article.
This news is specifically for those shareholders of Yes Bank whose 75% of the capital is blocked in the stock during the restructuring done in the stock before the announcement of Follow on Public Offer (FPO) and not for new investors. The board of the Yes Bank has approved raising Rs. 10,000 Crore through debt (bonds/debentures) from the market on June 10, 2021.
Why does Yes Bank need to raise money through debt?
The two important factors: earnings visibility and growth in earnings are still not visible in the books of Yes Bank. The risk to reward ratio is also not looking favorable. But this announcement is positive for the old investors as it provides some hope for the survival of the company out of the bad times it is going through.