The third straight session share of Yes Bank slip continuously, as investors remain cautious amid concerns over the bank’s exposure to CG Power and Industrial Solutions which has been hit by alleged financial irregularities and unauthorised transactions.
At 12:20 pm, shares of Yes Bank was trading at Rs 67.65, down 5.12% on BSE. On NSE, the stock is down 4.99%. Yes Bank holds 12.8% stake in CG Power and Industrial Solutions as of June 2019.
The company will restate accounts after discovering ‘significant accounting irregularities’ and governance lapses, said by the board of Gautam Thapar-promoted CG Power and Industrial Solutions Ltd. Also, it has found ‘suspect’ transactions that have led to a significant understatement of the company’s liabilities and advances to related and unrelated parties. Shares of CG Power also touched 52-week low of Rs 11.80 on BSE, losing 20% on Wednesday.
In last week, Yes Bank raised fund through qualified institutional placement (QIP) of Rs 1930.46 crore for its business expansion. According to Private Sector bank, five investors bought more than 65.5% of the equity shares offered in its recent QIP of Rs 1,930.46 crore.