India's major private sector lender Yes Bank's share price gained on Monday morning, after media reports that marquee PE investors are eyeing stake in the bank.
India’s major private sector lender Yes Bank’s share price gained on Monday morning, after media reports that marquee PE investors are eyeing stake in the bank. Yes Bank shares gained more than 9% to hit the day’s high at Rs 45.95 on BSE. Yes Bank is in talks with three top technology companies, including Microsoft Corp, to induct one of them as a strategic shareholder as part of the bank’s strategy to get fresh capital infusion and augment its digital ambitions, Livemint reported citing sources. Further, according to a report by Economic Times, prominent PE giants including TPG, The Carlyle Group and Farallon Capital — are looking to buy large strategic stakes in Yes Bank as all pledged shares have now been sold and business fundamentals present a compelling value proposition at current market price.
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Last week, Yes Bank shares recovered after the overhang relating to pledged shares ended, and CEO Ravneet Gill allayed concerns relating to asset quality. Yes Bank shares ended 33% higher at Rs 42.55 on BSE. In a stock exchange filing, Yes Bank said that a “forced sale” of 10 crore pledged equity shares or 3.92% of the bank’s share capital by lenders were primarily responsible for last Tuesday’s crash in the stock price. Yes Bank’s shares crashed 22.8% on October 1 to close at Rs 32 on BSE. Following this deal, “the entire pledge stands extinguished”, the bank added. The stakeholder in question is one of the bank’s promoters, Rana Kapoor, and the invocation of pledge on the equity shares was triggered by Reliance Nippon Life Asset Management.
Notably, Yes Bank has also filed a complaint with Mumbai Police and cyber cell against circulation of fake news about the bank’s financial credibility, according to a statement to the stock exchanges. “Yes Bank has requested the authorities to form a multi-disciplinary team of experts for detecting the origin of the fake news and assess the short-sell positions, held either directly or indirectly by such accused persons,” the bank said.