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Of the eight financial intermediaries who invested last month in a dramatic rescue of Yes Bank, three -- Federal Bank, Kotak Mahindra Bank and IDFC First Bank -- have pared their stake, going by the private sector lender’s shareholding pattern as at March-end 2020.
The eight financial intermediaries collectively forked up Rs 10,000 crore to take 79.68 per cent stake in the private sector bank at a share price of Rs 10 per equity share (comprising Rs 2 face value and Rs 8 premium) in mid-March 2020.
State Bank of India (SBI) took 48.21 per cent stake, followed by ICICI Bank and HDFC (7.97 per cent each), Axis Bank (4.78 per cent), Kotak Mahindra Bank (3.98 percent), Federal Bank and Bandhan Bank (2.39 per cent each), and IDFC First Bank (1.99 per cent), as per shareholding data as on March 14, 2020.
As at March-end 2020, Federal Bank’s shareholding in Yes Bank declined to 1.92 per cent stake; and Kotak Mahindra Bank and IDFC First Bank to 3.61 per cent and 1.67 per cent, respectively. SBI, ICICI Bank, HDFC, Axis Bank and Bandhan Bank continue to hold the equity shares allotted to them in the Bank.
Analysts’ say the eight banks provided initial support to Yes Bank when it was needed the most. Looking at the demand in the market, three of the investors would have decided to sell a portion of the stake.
On March 16, the first trading day after the shares were allotted, Yes Bank shares were trading at around Rs 37 apiece, climbed to around Rs 61 by March 18 and came down to around Rs 22. The scrip closed at Rs 28.30 apiece on BSE on Thursday.
While it could not be ascertained at what price Federal Bank, Kotak Mahindra Bank and IDFC First Bank pared their stake in Yes Bank, going by the price movement between March 16 and March 31, they would have made money hand over fist on their investment.
Promoter stake in the bank also came down in the period between March 17 and March 31 from 1.67 per cent to 1.42 per cent. This was because Madhu Kapur pared her stake to 1.12 per cent by March end from 1.38 per cent previously. Promoter group entity Mags Finvest continues to hold 0.3 per cent stake in the bank while its erstwhile Managing Director and CEO as well as co-founder Rana Kapoor has zero per cent stake in the bank.
As per the 'YES Bank Ltd. Reconstruction Scheme 2020', SBI cannot reduce its holding below 26 per cent before completion of 3 years from March 14, 2020.The remaining shareholding of SBI is freely transferable and shall lock-in.
Of the equity shares allotted to seven investors (excluding SBI), 75 per cent of such number of equity shares allotted to each investor is subject to a lock in for a period of 3 years from March 13, 2020. The remaining 25 per cent of the shareholding allotted to each investor is freely transferable and shall not be subject to any lock-in.
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