Shares of private sector lender Yes Bank plunged on Friday morning to emerge a the biggest Sensex loser, paring Wenesday's gains after reports that founder Rana Kapoor is in talks with Paytm to sell stake.
Shares of private sector lender Yes Bank plunged on Friday morning to emerge a the biggest Sensex loser, paring Wenesday’s gains after reports that founder Rana Kapoor is in talks with Paytm to sell stake. Yes Bank share price plunged more than 5.6% to hit the day’s low at Rs 64.10 on BSE. On Wednesday, YES Bank shares jumped over 15% on September 11 trade after media reports that co-founder Rana Kapoor is in talks with Paytm to sell his stake in the bank. Rana Kapoor has approached Paytm’s boss Vijay Sharma to sell his family members’ and his own stake in Yes Bank for Rs 1,800-2,000 crore, CNBC TV-18 reported citing sources as saying. The companies are still negotiating on the price and other issues, the news channel added.
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Interestingly, Yes Bank CEO Ravneet Gill told news agency Reuters that the firm is close to securing a deal to sell a minority stake to a global technology company to help boost the private lender’s capital. “We are in fairly advanced level of talks right now and it is close to being a done deal,” Ravneet Gill, chief executive and managing director of the corporate and retail bank, told the agency in an interview. Rana Kapoor and his family along with the investment firms together own 9.64% stake in Yes Bank, as at the end of June quarter, according to the bank’s stock exchange filing. As per current valuations, the Rana Kapoor and family hold assets worth Rs 1,550 crore, taking yesterday’s closing price into account.
Notably, Yes bank shares have been under pressure in the recent times, down more than 75% from 52-week high of Rs 328.95 on BSE. Last week, Yes Bank shares plunged after global firm Morgan Stanley cut share price target on the stock. Morgan Stanley said that the volatility in the stock price reflects asset quality concerns, lack of clarity on timing and price of further fund raising. Morgan Stanley has a stock price target of Rs 55 on the shares.