Yes Bank shares tank over 4% after QIP debacle

The shares of Yes Bank tanked over 4% on Friday after the bank turned down $1 billion (Rs 6640 crore) qualified institutional placements (QIP) proposal.

At 1036 hours the shares of the bank were trading at Rs 1276 per piece, down 4.11%, or Rs 53.65 on BSE.

On Wednesday the bank had announced that it has received boards approval for raising $1 billion via QIP. 

But, later on Thursday, the bank pulled back the QIP launch proposal on the back of negative volatility in the trading sessions from the 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." 

Yesterday, investors dumped the shares of the 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.