Shares of YES Bank fell over 16% in Monday's early session following reports that suggested the Securities and Exchange Board of India (SEBI) may look into a large amount of stock transaction of the lender under the Securities Lending and Borrowing Mechanism (SLBM).
On July 9, investors reportedly borrowed 95.9 lakh shares worth Rs 5.9 crore for an interest rate of around Rs 7 per share. Investors borrowed these shares for a month with settlement due on August 6.
YES Bank share price opened with a loss of 15.29% and later fell 16.86% to an intraday low of Rs 21.2 against the previous close of Rs 25.50 on BSE.
The stock has traded in a wide range of Rs 2.3. YES Bank shares have fallen 17.26% in the last 2 days.
YES Bank share is trading lower than 5, 20, 50, 100 and 200-day moving averages. YES Bank stock price has fallen 14% in one week, 24% in one month and 52% since the beginning of the year 2020. In the last one year, the stock price of the private lender has declined over 76%.
These transactions took place a day prior to the announcement of the bank's floor price for its follow-on public offer (FPO). In another update, the Enforcement Directorate (ED) will file the second chargesheet in the YES Bank case on Monday. The ED is investigating suspicious loans granted by YES Bank and alleged quid pro quo. The agency had arrested the promoters of DHFL, Kapil and Dheeraj Wadhawan in the YES Bank case on May 14
Meanwhile, with regard to company's ongoing FPO, the Capital Raising Committee (CRC) of the Board of Directors of YES Bank will meet on July 14 for the allocation of equity shares to successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price.