Yes, the Bank's list of investors does not impress the markets
Mumbai: actions of Yes bank It closed 6% below Rs 64 after the private lender revealed that no frontline investor was making a large investment in the lender.
A report of Jefferies He noted that of the total proposals received, $ 1.7 billion were from two less known foreign investors. The brokerage house added that both foreign investors did not appear to have a positive reputation. The biggest concern in the minds of investors was whether they were going to approve regarding the RBI Fit and appropriate guidelines.
Well, what will they think if, for example, a man is one of Canada's richest men and doesn't even have a Wikipedia link or his website reveals much about him and is very cryptic, said Suresh Ganapathy, Macquarie research analyst What will you think if, for example, a large investor is giving $ 500 million and there are very uneven things available about the investor on the web and the investor doesn't even have an official website? He added
According to Ganapathy, for nearly 85% of the proposed $2-billion commitment for Yes bank announced on Friday, quality is a big suspect. Spokespersons of SPGP , a Hong Kong-based fund backed by Erwin Singh Braich , in an interview to television channels, denied that the group failed to pay up earnest money in the Reid and Taylor bid on the NCLT . They said they had backed out as they were not interested. On Friday evening, Yes bank had said that it had received commitments from investors willing to put in $2 billion. Of this, $1.2 billion was to come from Canadian investor Erwin Singh Braich with his SPGP Holdings. Another $ 500 million would come from Citax Holdings and Citax Investment Group. The rest would come from family investors such as Discovery Capital, Ward Ferry, Aditya Birla Family Office, GMR Group and Rekha Jhunjhunwala.