YES Bank makes preferential allotment to Carlyle, Advent; stock dips 8%

Morgan Stanley has initiated the coverage on YES Bank with 'underweight' rating and a price target of Rs 20.50 per share

Shares of YES Bank dipped 8 per cent to Rs 22 on the BSE in Wednesday's intra-day trade, falling 11 per cent from the day's high of Rs 24.75, as investors booked profit booking after four days of relentless rally. They also took money off the table after private equity (PE) funds Carlyle Group and Advent picked 9.99 per cent stake in the bank.

These two PE funds together would pump in about Rs 8,900 crore in YES Bank with full conversion of warrants into equity, it said on Tuesday.

"The board has approved allotment of a total