Yes bank shares: Yes Bank shares saw a stormy boom as soon as the trading started on May 12 today. The share price rose 9 per cent to a level of Rs 21.70. This boom came after the news that Sumitomo Mitsui Banking Corporation (SMBC), one of Japan’s largest financial companies, has signed an agreement to purchase a 20 per cent stake. SMBC This stake is buying a group of banks led by State Bank of India (SBI), who saved Yes Bank from drowning in the time of crisis in 2020.
According to the agreement, the SMBC will buy a 20 per cent stake of Yes Bank for around Rs 14,000 crore. Of this, 13 percent of this will be taken by State Bank of India (SBI). While the remaining stake will be purchased from other banks like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank. All these banks are partially out of Yes Bank.
SBI will get around ₹ 9,000 crore ($ 1 billion) from this deal, while the rest of the banks can get from Rs 330 crore to Rs 1,300 crore according to their share.
SMBC has decided to buy Yes Bank shares at a rate of Rs 21.5 per share, which is 7.5% higher than Friday’s closed price. Earlier on Friday 9 May, Yes Bank shares closed up 10% amid speculation of the deal. Currently, the stock is trading at a price of Rs 20.65 with a gain of 3.15 per cent on NSE at around 9.30 am, which is slightly less than the deal price.
Apart from SBI and other institutional investors, Yes Bank also has more than 62 million small retail investors. According to data from the March quarter, Retail Investors hold a stake of 22.55% in Yes Bank. Let us know that Yes Bank no longer has any promoter, because RBI did not carry forward the tenure of its founder Rana Kapoor in the year 2019.
Yas Bank holds 9.2 per cent stake in the Equity firm Verwanta Holdings and CA Basque Investments 6.84 per cent. However, both these big shareholders are not selling stake in this deal.
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