Stocks

Yes Bank shares rally in second consecutive session, up 28%

PTI New Delhi | Updated on March 11, 2020 Published on March 11, 2020

Shares of Yes Bank continued to gain for the second consecutive session on Wednesday, rallying up to 28 per cent, as investor sentiment turned positive after SBI said it will buy a 49 per cent stake in the cash-strapped lender. The scrip spiked up to 28 per cent to ₹27.20 on the BSE. On the NSE, it jumped by similar margins to ₹27.20.

In the previous session on Monday, shares of lender settled 31.17 per cent higher at ₹21.25. Financial markets were closed on Tuesday for Holi.

State Bank of India (SBI) had on Saturday announced it will pick up 49 per cent stake in Yes Bank for ₹2,450 crore. “Yes Bank has 255-crore shares of ₹2 per share. SBI will be issued 245 crore shares at a price of ₹10 per share for ₹2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank,” the SBI said in a statement.

Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise USD 2 billion initially during this fiscal, which was then pruned to USD 1.2 billion as it could not rope in any investor.

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Published on March 11, 2020
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