EXPLAINED: WHY YES BANK SHARE PRICE JUMPED OVER 7% TODAY
Yes Bank shares rallied sharply in Friday's trade, rising over 8% to touch an intraday high of Rs 19.73 on the Bombay Stock Exchange. At around 1:12 pm, shares of the company were down 6.92% to Rs 19.48.
The stock has now gained nearly 11% over the past five sessions, sparking investor curiosity.
The fresh optimism stems from market chatter around a potential stake acquisition by Japan's Sumitomo Mitsui Banking Corporation (SMBC). Although Yes Bank clarified that it routinely engages with stakeholders as part of its growth strategy, speculation about a possible foreign investment has lifted sentiment.
WealthMills Securities' Kranthi Bathini noted that the news of a global player eyeing a strategic stake, along with improved Q4 results and positive sectoral momentum, is driving interest in the stock. He advised high-risk, long-term investors to consider holding their positions.
Adding fuel to the rally, Pace 360's co-founder Amit Goel told Business Today that his asset management firm has taken a significant position in Yes Bank, betting on favourable regulatory outcomes and future upside.
"I believe this could deliver 15â20% returns in the next few months," he said, hinting at a potential transformation of Yes Bank into an Indian arm of SMBC, subject to clearances.
Currently, SBI remains the largest stakeholder in Yes Bank with a 24% stake.
Other major Indian institutions like ICICI Bank, Axis Bank, Kotak Mahindra Bank, and LIC together hold over 11%. Meanwhile, PE giants Advent International and Carlyle own 9.2% and 6.84%, respectively.
2025-05-09T08:01:31Z