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Yes Bank share price jumps 6% as Carlyle, Advent International to invest $1.12bn; should you buy, sell hold?

Yes Bank share price soared 5.7 per cent to Rs 15.80 apiece on BSE on Monday after the bank announced that the private equity funds Carlyle and Advent International will invest USD 1.12 billion.

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In the last five days, Yes Bank stock price has gained 8 per cent, and 20 per cent in one month. Image: Pixabay

Yes Bank share price soared 5.7 per cent to Rs 15.80 apiece on BSE on Monday after the bank announced that the private equity funds Carlyle and Advent International will invest USD 1.12 billion. Technical analysts say that any major move in Yes Bank is likely only above 15.85. “So all up moves should be used to exit. At present levels, no fresh buying is advised. In fact, any slightest of the move on the higher side must be used to exit,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com

Both the global PE funds will be acquiring a 10 per cent stake each in Yes Bank, which had to be bailed out in a Reserve Bank of India (RBI) and government-led reconstruction scheme for want of capital buffers and after the then management failed to sell the bank’s story to investors. “YES Bank will raise the funds through a combination of about $640 million in shares and about $475 million in share warrants. It will offer 3.69 billion shares to affiliates of Carlyle Group and Advent. The company will also issue 2.56 billion share warrants at a price of Rs 14.82 per warrant to both the investors,” the private lender said in a statement.

Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com that Yes Bank share has been rallying since the bank announced its plan of fundraising through rights issue, preferential allotment etc. The bank has also posted better-than-expected earnings figures for the June 2022 quarter with a substantial plunge in gross NPAs. However limited upside is suggestive on technical setup with a target of Rs 17-18 levels in near term.

Despite positive news of Yes Bank planning to raise capital by selling its stake in the PE firms, AR Ramachandran, Co-founder & Trainer, Tips2Trades believes this rally should be used to book profits in previous buy positions. “As broader markets get overbought, we believe Yes Bank could again retest 12.7-13 levels in the very near term,” Ramachandran told FinancialExpress.com

In the last five days, Yes Bank stock price has gained 8 per cent, and 20 per cent in one month. On a year-to-date (YTD) basis, the stock has added 7.5 per cent and more than 13 per cent in the last six months. In the trading volume terms, a total of 4.03 shares exchanged hands on BSE, while 17.64 crore stocks traded on National Stock Exchange, so far in the day.

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