Yes Bank advanced 3.78% to Rs 61.75 on bargain hunting after a recent sell off.Shares of Yes Bank slipped 15.06% in the past three trading sessions to settle at Rs 59.50 yesterday, 3 December 2019, from its close of Rs 70.05 on 28 November 2019. The recent sell off was triggered by the bank's board approving a decision to raise upto $2 billion through preferential allotment of shares.
The bank, in an exchange filing post trading hours on 29 November, said that various investors have expressed willingness to subscribe to equity shares of the bank. Among the institutional investors, a top-tier US Fund House, Discovery Capital and Ward Ferry expressed interest in acquiring fresh stake in the bank. Aditya Birla Family Office, Citax Holdings Ltd & Citax Investment Group, GMR Group and Associates, Erwin Singh Braich I SPGP Holdings and Rekha Jhunjhunwala are the five family offices that have expressed interest in subscribing to the equity of the bank.
Shares of Yes Bank declined amid reservations about the quality of the investors. Media reports suggested that Erwin Singh Braich had gone through bankruptcy proceedings roughly 20 years ago. Not much is known about the companies he has founded and promoted, the reports added.
The bank's board shall reconvene on 10 December 2019 to finalize and approve the details of the preferential allotment, subject to regulatory and statutory approvals.
Meanwhile, Yes Bank announced after trading hours yesterday, 3 December 2019, that it sold its entire holding of 13,77,000 equity shares constituting 5.49% of the paid-up share capital of One Point One Solutions ('OPOS'). The bank had earlier on various dates, sold 22,000 Shares of OPOS amounting to 0.09% of the total share capital of the company, it said in a filing with stock exchanges.
On the technical front, the stock's RSI (relative strength index) stood at 47.732. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading above its 50-day moving average (DMA) placed at Rs 56.79, but below its 200 DMA placed at Rs 128.82.
Yes Bank reported a net loss of Rs 600.08 crore in Q2 September 2019 as compared to net profit of Rs 964.70 crore in Q2 September 2018. The total income of the bank fell 4.3% to Rs 8,332.21 crore in Q2 September 2019 over Q2 September 2018.
Yes Bank is engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking and wealth management. The firm's segments include treasury, corporate/wholesale banking, retail banking and other banking operations.
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