YES Bank share price rose 35% in afternoon trade today after the lender said it has received a binding offer from a global investor for an investment of $1.2 billion through fresh issue of equity shares. The stock was the top gainer on both Sensex and Nifty. YES Bank share price zoomed 34.97% intra day to Rs 76.65 compared to the previous close of Rs 56.80 on BSE. The sudden spike in the stock came a day ahead of the announcement of lender's earnings for the quarter ended September 2019.
On Nifty, YES Bank share price rose nearly 35% intra day to Rs 78.70 against previous close of Rs 56.80.
The large cap stock closed 24% or 13.65 points higher at Rs 70.45 on BSE. On NSE, the stock ended 23.77% higher at Rs 70.30.
The lender in a communication to bourses said ,"The bank would like to inform that it has now received a binding offer from a global investor for an investment of US$ 1.2 billion through fresh issuance of equity shares, subject to regulatory approvals and conditions as well as bank's board and shareholders approvals. The bank also continues to be in advanced discussions with other global and domestic investors."
Santosh Meena, senior analyst at TradingBells said, "YES Bank gained about 35% in today's trading session after the lender said it received interest from a global player for equity infusion which is a major requirement for the bank.
Technically 79-81 is a critical resistance zone which is also near the previous QIP price of 87. Therefore, it is difficult to see further upside from here in the near term. The lender will post its Q2 earnings tomorrow which may cause some selling pressure. In the short term, investors should avoid any long position at the current level while a correction in 60-55 zone will be a better opportunity to take a risk as a long-term bet."
YES Bank share price has gained 163% in 18 trading sessions reacting to positive news after starting the month on an extremely negative note. On October 1, YES Bank share price plummeted over 23 percent to hit a fresh 52-week low of Rs 29.05 on a report that the lender's promoters have sold another 2.16 percent stake in the bank.
According to a report in The Economic Times, YES Capital (India), Morgan Credits Private and Rana Kapoor jointly sold 552 lakh shares, or 2.16 per cent, stake in the open market during September 26 to September 27.
However, the stock rebounded after management asserted its stable financial position and on reports that global private equity firms - TPG, The Carlyle Group and Farallon Capital - were seeking to buy large strategic stakes in the private lender.
On October 3, YES Bank share price closed 32.97 percent or 10.55 points higher on BSE after the private sector lender reaffirmed its stable financial position following a crash in stock in the previous trading session. On Nifty, the stock ended 33.59% higher at Rs 42.75.
On October 7, YES Bank share rose over 9 percent intra day at Rs 45.95 compared to the previous close of Rs 42.15 on BSE after reports emerged that global private equity firms - TPG, The Carlyle Group and Farallon Capital were interested in buying stake in the lender. Microsoft too was reported to be interested in buying stake in the lender.
On October 15, YES Bank share price rose 3.5 percent intraday after the bank announced that it sold 6.77 percent stake in Fortis Healthcare Limited for Rs 645 crore. In a bulk deal, YES Bank offloaded its remaining stake shares at an average price of Rs 130.27, valuing the transaction size at Rs 645.09 cr and completely exited the from the hospital chain' shareholding.
On October 18, a media report said industrialists Sunil Mittal and Sunil Munjal have shown their interest in acquiring stake in the private sector lender. However, later a Bharti spokesperson strongly denied such rumours. YES Bank too in a clarification denied the rumour and said as a policy, the bank would not comment on the matter. However, its share price rose over 9 percent intra day to Rs 52.30 that day compared to the previous close of Rs 47.40 on BSE.
On October 22, YES Bank share price gained nearly 10% intraday to Rs 56.5 amid media reports that the bank was set to take over an estimated Rs 6,000-crore residential project from the developer Sumer Radius Realty, over non-payment of dues worth more than Rs 479 crore.
Edited by Aseem Thapliyal