Mumbai: Shares of Yes Bank surged 7 percent Thursday on the back of a 28.1 percent rise in net profit for the March quarter and fund-raising plans, thus adding Rs 2,325 crore to its market capitalisation.
After gaining 7.38 percent to Rs 854.50 in intra-day trade on the BSE, the shares finally ended at Rs 851.40, up 6.99 percent from previous close.
On the NSE, the stock climbed 6.94 percent to settle at Rs 851.30.
In a stock exchange filing yesterday, Yes Bank said its board of directors in a meeting "empowered the Capital Raising Committee, a sub-committee of the board, to raise funds by way of issuance of equity capital up to USD 1 billion in one or more tranches on such terms and conditions as it may deem fit".
Yes Bank has reported a 28.1 percent rise in net profit at Rs 551 crore for the March quarter on higher interest income and a healthy growth in retail and SME advances.
Total income increased to Rs 3,678.83 crore for the quarter from Rs 3,013.57 crore.
Yes Bank today said it has received approval from its board of directors to hike the foreign shareholding limit up to 74 percent, from the existing 49 percent.
Following the stock bounce, the company's market value went up to Rs 35,566 crore.
On the volume front, 12.08 lakh shares of the company changed hands on the BSE and over 1 crore were traded on the NSE during the day.
"Yes Bank rallied more than 7 percent today as its board decided to raise FII limit to 74 percent and allowed the company to raise up to USD 1 billion from overseas investors," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio.
The country's fifth-largest private sector lender is looking at raising USD 1 billion by selling shares in local and overseas markets.
The bank, which was founded in 2004, said the share sale could happen in one or more tranches.
It had raised USD 500 million from a stock sale last May.
In the broader market, the benchmark BSE Sensex ended at 27,735.02, down 155.11 points.
