Public shareholders of YES Bank have become the biggest casualty of RBI's latest action on the private sector lender. They have lost Rs 9,691 crore since December after Reserve Bank of India (RBI) took control of private sector lender which was for long seeking funds to shore up its capital base.
Public shareholders which comprise 25 mutual funds, 238 foreign portfolio investors, four financial institutions and banks, LIC and 11 qualified institutional buyers among others held 91.67% stake in the lender as on December 31, 2019. With 233.79 crore shares held by public shareholders as on quarter ended December 2019, the value of their stake stood at Rs 10,976.82 crore with respect to closing price of Rs 46.95 on December 31.
The stock hit its all-time low of Rs 5.55 today after RBI placed the capital-starved lender under a moratorium, capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. Assuming there was no change in the stake of public shareholders after December quarter, the loss in share price since then has brought the value of their stake to Rs 1,285.88 crore today on an intra day basis.
Public shareholders incurred a notional loss of Rs 9,691 crore today after the stock price fell to its intra day low of Rs 5.5 on BSE.
Market capitalisation of the private lender fell to Rs 1,402 crore today when the stock fell to Rs 5.5. That's a loss of nearly Rs 10,572 crore in market cap when compared to the closing market cap of Rs 11,974 crore on December 31, 2019. YES Bank has disclosed that shareholders of promoters and promoter group held 8.33% stake or 21.24 crore shares in the bank at end of December quarter.
Madhu Kapur, wife of YES Bank's founder and promoter late Ashok Kapur held 6.8% stake or 17.52 crore shares at the end of last quarter. Mags Finvest, another promoter, owned 1.46% stake or 3.72 crore shares in the bank in December quarter.