YES Bank share rose 10% in early trade today after Brickwork Ratings upgraded the rating of Tier I subordinated perpetual bonds (Basel II) of the lender. The rating was changed to BWR BB+/ Stable from BWR D of YES Bank Limited.
The rating upgrade considers improvement in capitalisation ratios of the bank, strong shareholder base and experienced board members, the ratings agency said.
Share of YES Bank gained 9.92% to Rs 19.05 against previous close of Rs 17.33 on BSE.
In a month, the share has gained 46%. Market cap of the firm rose to Rs 47,303 crore. The large cap share has gained 24.07% in the last 3 days. YES Bank stock opened with a gain of 5.31% at Rs 18.25 today.
The share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.
However, the share has lost 66.32% in one year and fallen 59.68% since the beginning of this year. On Tuesday, YES Bank share hit upper circuit of 10%, following reports that the stock will be upgraded to large-cap category from mid-cap by mutual fund industry body The Association of Mutual Funds in India (AMFI).
With only buyers to bid and no sellers to offer, YES Bank share price opened at the day's low of Rs 15.98 and later rose to Rs 17.33, rising 9.96% against the last close of Rs 15.76.
YES Bank including four other firms- Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Food-Works - have a high probability of being included in the large-cap category from the midcap category as part of the half-yearly market-cap categorisation by mutual fund industry body AMFI.
As per a report by ICICI Securities (I-Sec), there is a high probability of the first four and a low probability for Jubilant FoodWorks to get upgraded to large-cap stock.
This was on the back of changes in investment rules for multi-cap funds ordered by the Securities and Exchange Board of India (SEBI).
The SEBI circular on asset allocation of multi-cap funds has mandated that a minimum 25% of total assets have to be allocated towards large-, mid- and small- caps each. The fresh list by AMFI is expected to be released by January 5, according to brokerages.