Snapping a five-day losing streak, YES Bank share price rallied over 12 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Thursday. According to market analysts, there are rumours that the bank might be taken over by the government or a state-owned entity. Clarification from the management on fund raising plans also helped the rally. YES Bank CEO and MD Ravneet Gill has expressed confidence that the bank will raise more than $500 million in this round of funding and there were plans B and C in place to ensure this, ET NOW reported.
In the last five trading sessions, YES Bank shares had tumbled 32 per cent as uncertainty over fund raising plans weighed on investor sentiment.
Ending a five-day losing streak, YES Bank shares opened higher and gained as much as 12.5 per cent to touch an intraday high of Rs 48.15 apiece on the BSE. Finally, the stock closed at Rs 45.35 apiece, rising 5.96 percent with 241.64 lakh shares changing hands on BSE, as compared to two-week average volume of 259.55 lakh shares.
On the National Stock Exchange (NSE), YES Bank shares ended 5.84 per cent higher at Rs 45.30 per cent. The scrip hit an intraday high of Rs 48.80 after opening higher against previous closing price of Rs 42.80.
YES bank shares have fallen over 38 per cent in the last one month amid concerns over stress in the financial system and delay in investment decision. The private sector lender's shares declined 15 per cent on Wednesday, its biggest fall since October 1, after declining 10 per cent in the previous session.
The question is should investors think about buying beaten down YES Bank stock before its board take a final decision on investment.
YES Bank's board had deferred an announcement on new investors at a meeting on Tuesday. The lender's board failed to reach a final decision on potential investors, but it favoured a $500 million offer from Citax Holdings Ltd. The bank said it is still reviewing another $1.5 billion of bids from SPGP Holdings and Canada's Erwin Singh Braich, which accounts for 60 per cent of its planned $2 billion capital raising. The bank however, maintained that it would continue to evaluate other potential investors to raise capital upto $2 billion.
Edited by Chitranjan Kumar