Shares of YES Bank have been in an uptrend since Thursday's early morning deals, snapping a three-day losing streak. The stock rallied 8% after a media report suggested that the private sector lender is looking for a new promoter. CNBC-TV18.com could not verify the news independently.
Following the report,
YES Bank shares have gained 8.35% to hit a day's high of
₹22.75 on the NSE. The stock had fallen 12.8% in the previous three
trading sessions.
The YES Bank stock is down 1% so far in 2024. It has gained 44.37% in the last one year.
YES Bank is planning to sell up to 51% of its stake for a target valuation of between $8-9 billion, up from its current market capitalisation of $7.2 billion, according to a Livemint report. The report said that Citigroup's India unit has been enlisted to facilitate the search for a potential buyer.
The lender has reportedly sent invitations to various domestic lenders, including the prevailing shareholders, for the participation. YES Bank has initiated discussions with banks and financial institutions in West Asia, Europe and Japan for the sale of at least 51% stake, the report added.
However, any new promoter holding more than 26% stake would require special approval from the Reserve Bank of India (RBI), as per central bank regulations.
The stake sale, as per the report, would give
State Bank of India (SBI), Life Insurance Corporation of India Ltd (LIC), HDFC Bank and other shareholders a room to exit their 2020 investments in the bank.
In a filing to the exchanges on March 14, the bank clarified saying the contents of the report are speculative in nature and the bank does not feel that it is appropriate to comment on market speculations.
First Published: Mar 14, 2024 12:46 PM IST
