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sara Kunju made post

Is it correct that Rajesh Jhunjhunwala is not participating in the preferential offer by Yes Bank and what does that mean for the bank?

Answer
user profile image
8 months ago


If reports in the newspapers are to be believed, then Rajesh Jhunjhunwala of RARE Enterprises has withdrawn his offer to invest $25 million in Yes Bank preferential offer. The investment was supposed to be made through the family office of Rekha Jhunjhunwala. This has come just a short while offer after Yes Bank announced that it would reject the offer to invest $1.2 billion given by Canadian investors; Erwin Singh Braich and SGPG Holdings. There had also been some reports in the electronic media about how the antecedents of these investor companies were suspect.

The reason for Rakesh withdrawing the offer is not yet known but it could have been driven by doubts over the ability of Yes Bank to capitalize its balance sheet adequately. It may be recollected that earlier Rakesh Jhunjhunwala had bought 1.3 crore shares in Yes Bank in November at a price of Rs.67, infusing nearly Rs.89 crore into the investment.


user profile image
8 months ago


More than the money, its the clout of a big investor not going ahead that will hurt Yes Bank. May be some retail investors who follow RJ will also back out and prices will fall.