Yes Bank shares tank 8% as lock-in period ends, stock hit a low of Rs 14.4

Private lender Yes Bank’s shares fell 8% in trade on Monday as the three-year lock-in period from RBI’s bailout plan expired.

yes bank
Most analysts and experts have a sell call on Yes Bank shares.

Yes Bank shares fell sharply in trade on Monday, down 8% to Rs 14.4 as the three-year lock-in period, since 13 March, 2020, expired, allowing private lenders and retail investors to sell their shares today onwards. Last week, the lock-in period for SBI, which was mandated not to decrease its holding below 26%, ended. The SBI-led consortium had infused Rs 10,000 crore in Yes Bank to help it meet liquidity, capital and other critical parameters. Ever since the crisis, the stock has been under pressure and on Friday, it closed at Rs 16.55 on the NSE.

In March 2020, nine banks led by SBI picked up almost 49% of Yes Bank stocks at Rs 10 per share, a premium of Rs 8 on the face value, as part of the RBI bailout. As per the RBI’s rescue plan, these nine financial entities were required to hold 75% of their shares bought as part of the rescue plan for three years. As of December 2022, SBI held 26.14% or 6,050 million shares of Yes Bank, while eight other banks originally held almost 11 billion shares in the bank. HDFC & HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, and IDFC First Bank also held almost 11 billion shares in the lender.

As of June, ICICI Bank held 3%, while Axis Bank, IDFC First Bank, and Bandhan Bank held between 1% and 2% stake each in the lender. Individual investors, including retail, HNIs and NRIs, hold up to 1.35 billion shares, while exchange-traded funds hold 67 million shares, all of which are likely to be sold over the next few weeks, according to analysts. SBI AMC holds 23.67 million of Yes Bank shares in its Nifty 50 ETF, while Kotak AMC, Nippon India, SBI ETF of Bank Nifty, and UTI AMC also hold millions of shares. However, most of these banks have already sold around 25% of their shares, which were not subject to the lock-in.

“Till March 2023, we are required to hold a 26% stake in Yes Bank. If it all, our stake comes within 26% till March 2023, I am quite okay with that. Beyond that, we’ve not thought at the board level. So, I am unable to comment anything relating to our further course of action,” said SBI chairman Dinesh Khara during December quarter earnings call. Most analysts and experts have a sell call on the scrip.

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First published on: 13-03-2023 at 09:20 IST
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