LIC to buy 1.35 billion shares of YES Bank at Rs 10 apiece: TV reports

LIC to buy 1.35 billion shares of YES Bank at Rs 10 apiece: TV reports

As part of the YES Bank restructuring plan, Life Insurance Corporation of India (LIC) would buy around 1.35 billion shares at a price of Rs 10 apiece, according to a report by business channel CNBC-TV18.

On Thursday, State Bank of India (SBI) had said it would infuse Rs 7,250 crore into ailing YES Bank to pick up to 49 per cent equity as part of the Reserve Bank of India-mandated bailout plan.

SBI will pick 7,250 million shares at Rs 10 each, and its shareholding will remain within 49 per cent of the paid-up capital of the private sector lender.

Under the restructuring scheme, the authorised capital shall stand altered to Rs 5,000 crore.

The number of equity shares will stand altered to 24,000 million of Rs 2 each aggregating to Rs 4,800 crore. READ MORE

On March 5, the RBI had imposed a moratorium on YES Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The central bank had also superseded the board and placed it under an administrator, Prashant Kumar, who is a former deputy managing director and chief financial officer of SBI.

The private sector lender is scheduled to announce its results for the third quarter ended December 2019 (Q3FY20) on Saturday, March 14. According to Siddharth Purohit, an banking sector analyst at SMC Global, says “Quality of book / accounts; actual deposit base; details on the amount of money needed to meet the capital adequacy norms and get new investors on board; and an honest admission of the troubled assets of the bank are the four key things investors should monitor."

At 01:02 PM, shares of YES Bank were trading 4.6 per cent higher at Rs 26.20 per share against around 4 per cent rise in the S&P BSE Sensex.