Stocks

Yes Bank shares tank on CG Power

Our Bureau Mumbai | Updated on August 29, 2019

Yes Bank shares tank.

Shares of Yes Bank dipped 6.5 per cent on NSE on Thursday afternoon after CG Power announced removal of its Chairman Gautam Thapar.

Read more: CG Power board sacks Chairman Gautam Thapar with immediate effect

A financial fraud worth thousands of crores has been detected at the Gautam Thapar-promoted CG Power and Industrial Solutions.

Also read: CG Power reports massive fraud

The company had earlier informed stock exchanges that an investigation by an independent law firm had found that some employees had carried out unauthorised transactions, which led to a potential understatement of not only the liabilities of CG Power but even advances to related and unrelated parties of the company and the group.

The CG Power promoters have pledged 100 per cent of their holding in the company. YES Bank holds a nearly 13 per cent stake in the company, acquired through the revocation of a pledge.

Shares of Yes Bank were down 10 per cent intraday on August 28 after Moody's downgraded lender's credit rating with a negative outlook, citing lower-than-expected capital raising. At 1.05 pm, the stocks of Yes Bank were trading 6.89 per cent lower at ₹55.40.

Published on August 29, 2019

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