On the BSE, the company's shares gained 24.03 per cent or Rs 13.65 to Rs 70.45 per share.
It touched a high of Rs 76.65 and a low of Rs 54.90 during the day.
Earlier in the day, the lender said in a regulatory filing: "The bank would like to inform that it has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares, subject to regulatory approvals or conditions as well as bank's board and shareholders' approvals."
Yes Bank Limited is a private sector bank founded by Rana Kapoor and Ashok Kapur in 2004.
"Shares of Yes Bank rose as much as 38.6 per cent, the most in over 14 years, to Rs 78.90, before closing 24 per cent higher at Rs.70.40," HDFC Securities' Retail Research Head Deepak Jasani told .
"The bank received a binding offer from a global investor for an investment of $1.2 billion through fresh issuance of equity shares, according to its exchange filing. The bank also continues to be in advanced discussions with other global and domestic investors, the filing said," Jasani added.
According to V.K. Vijaykumar, Chief Investment Strategist, Geojit Financial Services: "Yes Bank is badly in need of capital for growth. Absence of positive news on this front led to bear hammering in the stock, pulling it below Rs 30.
"It is natural that investors are finding it attractive to invest in the stock for a stake. Further developments will depend on who the investor is and the regulatory approvals."
( With inputs from IANS )