You will Know all about Yesbank AT1 Bonds in below writeup but prior to that we fail to understand that we as a SEBI regd tips provider were able to foresee that days of Yes bank are limited way back in Nov 2018 and published this article covering Yesbank as a falling knife stock along with DHFL and PNB chart; than how come our regulators like RBI which has all the access to information fail to get the signals that this bank is going to be doomed.
What is a Bond?
We all knew well that bond is issued by a firm in order to borrow large amount of money
Bonds come under the category of debt securities where issuer owes subscribers or holders a debt and are obliged to pay them with principal and interest upon maturity
Yes Bank AT1 Bond
Before entering into a bond, let's check about its previous fundraising plans
QIP Plan:
On April 27th, 2016, Yes Bank has conducted a board meeting for fundraising plans through QIP which was worth around $1 Billion.
SEBI has found that YES Bank was violating LODR. LODR means Listing Obligation and Disclosure Rules.
As per SEBI rules, any listed firm has to inform about their board meetings two days prior which involves fundraising plans like QIP or public offering. But it has failed to do.
Later Yes Bank rolled out this plan.
QIP in 2019:
Yes Bank has raised a total of Rs 1,930 crore on 16th August 2019 by selling shares to institutional investors from India and abroad through a qualified institutional placement which is shortly called as QIP
On December 9th, 2019, news came like Yes Bank is going to make a preferential allotment of shares. Share prices were increasing because of news-based.
QIP request to SEBI in 2020:
The article came in moneycontrol stating that:
In January 2020, YES Bank has requested SEBI for exemption in their 2000 Crores of another QIP plan. This is because there should be at least a minimum of 6 months time gap between two QIP's.
Unfortunately, January was 5th month of its QIP in August.
Also, it was said that the floor price of YES Bank's value was fixed high and it was around rupees 87.9 per share.
Again on 7th Feb 2020, Yes Bank said that they have approval from Shareholders to raise amount worth rupees 10,000 Crores via QIP
This clearly shows that they were very keen on Fundraising plans and keep on focusing only on this.
The main reason for the frequent fundraising plan is NPA.
After reading all these you can come to know what you should do about this bond.
As of now, many people are keen on taking away all of their money from YES bank.
We don't wish to comment about the AT1 bond specifically since existing bondholders have filed a petition in court against its rescue plan which is said to be heard in court on March 11th, 2020.
Yes Bank had about 88 billion rupees ($1.2 billion) in AT1 capital as of March 2019 under the Basel III framework.
Investors included
Nippon India Mutual Fund,
Franklin Templeton,
local fund houses and
retail investors.
Remember one thing that in these days many companies are not performing well.
Bonds might be at risk as of now is what we conclude and it is better to stay away from any bonds in the current market situation
There are wide varieties of options available to focus on and one such option is the best intraday tip with which you can make money on a daily basis.
What is a Bond?
Bonds come under the category of debt securities where issuer owes subscribers or holders a debt and are obliged to pay them with principal and interest upon maturity
Yes Bank AT1 Bond
Before entering into a bond, let's check about its previous fundraising plans
QIP Plan:
On April 27th, 2016, Yes Bank has conducted a board meeting for fundraising plans through QIP which was worth around $1 Billion.
SEBI has found that YES Bank was violating LODR. LODR means Listing Obligation and Disclosure Rules.
As per SEBI rules, any listed firm has to inform about their board meetings two days prior which involves fundraising plans like QIP or public offering. But it has failed to do.
Later Yes Bank rolled out this plan.
QIP in 2019:
Yes Bank has raised a total of Rs 1,930 crore on 16th August 2019 by selling shares to institutional investors from India and abroad through a qualified institutional placement which is shortly called as QIP
On December 9th, 2019, news came like Yes Bank is going to make a preferential allotment of shares. Share prices were increasing because of news-based.
QIP request to SEBI in 2020:
The article came in moneycontrol stating that:
In January 2020, YES Bank has requested SEBI for exemption in their 2000 Crores of another QIP plan. This is because there should be at least a minimum of 6 months time gap between two QIP's.
Unfortunately, January was 5th month of its QIP in August.
Also, it was said that the floor price of YES Bank's value was fixed high and it was around rupees 87.9 per share.
Again on 7th Feb 2020, Yes Bank said that they have approval from Shareholders to raise amount worth rupees 10,000 Crores via QIP
This clearly shows that they were very keen on Fundraising plans and keep on focusing only on this.
The main reason for the frequent fundraising plan is NPA.
After reading all these you can come to know what you should do about this bond.
As of now, many people are keen on taking away all of their money from YES bank.
We don't wish to comment about the AT1 bond specifically since existing bondholders have filed a petition in court against its rescue plan which is said to be heard in court on March 11th, 2020.
Yes Bank had about 88 billion rupees ($1.2 billion) in AT1 capital as of March 2019 under the Basel III framework.
Investors included
Nippon India Mutual Fund,
Franklin Templeton,
local fund houses and
retail investors.
Remember one thing that in these days many companies are not performing well.
Bonds might be at risk as of now is what we conclude and it is better to stay away from any bonds in the current market situation
There are wide varieties of options available to focus on and one such option is the best intraday tip with which you can make money on a daily basis.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
