Yes Bank postpones QIP proposal on negative trading session

Yes Bank on Thursday turned down the QIP launch proposal on the back of negative volatility in the trading session from investors. 

It said in a statement, " Due to extreme volatility during today's trading day because of misinterpretation of new QIP guidelines, Yes Bank has been advised by its appointed merchant bankers to defer its proposed QIP." 

On Wednesday Yes Bank, announced that it has received boards approval for raising $ 1 billion (approximately Rs 6640 crore) via qualified institutional placements (QIP). 

Following the announcement, the investors reacted negatively on the Dalal Street. 

Shares of Yes Bank on BSE, slumped by almost Rs 75 points or 5.32% to Rs 1330.65.

It opened at Rs 1390 lower from its previous closing of Rs 1405.40. 

Total quantity traded on BSE, was 4.67 lakh shares against two weeks average quantity of 1.77 lakh shares. 

Investors dumped the shares of Yes bank in such away that it scrapped the 52 week high of Rs 1450 which the bank reached in previous trading session. 

This was expected to be among the biggest launch in the QIP market since the start of the financial year 2017. 

As per Prime Database as on August, 2016, companies have been lackluster towards QIP by raising Rs 645 crore with just 6 companies entering in this group.