Yes Bank Ltd shares jumped as much as 8.8% in intra-day trade on Tuesday after renowned stock market investor Rakesh Jhunjhunwala bought 12.95 million shares of the bank worth Rs 87 crore on Monday.
According to bulk deal data available on BSE, Rakesh Jhunjhunwala bought 12,950,000 shares of Yes Bank, that translates into around 0.5% stake in the bank, at an average price of Rs 67.1 apiece.
At 9:36 am, shares of Yes Bank were trading at Rs 69.70, up 5.4%, after hitting an intra-day high of Rs 72. Notably, the stock has recovered nearly 53% in the past one month.
The development comes just days after CEO Ravneet Gill announced that Yes Bank has received a binding offer of $1.2 billion from a global investor and another eight bids from global investors worth close to $1.5 billion. “We have $3 billion of potential money which can come in and will be looking at all the options with an open mind,” Gill said, adding: “Yes Bank’s common equity tier-I capital buffer will go up by 2.6% over the 8.7% in September 2019 if the $1.2 billion funds come in.”
On Friday, Yes Bank reported a net loss of Rs 600.08 crore for the second quarter ended September (Q2). Net interest income during the quarter declined 9.6% year-on-year to Rs 2,185.91 crore, which included fresh slippages of around Rs 228 crore.
Interestingly, Rakesh Jhunjhunwala has purchased Yes Bank shares at the time when brokerages are bearish on the stock with most of them giving a ‘sell’ rating due to concerns over asset quality and subdued deposit and loan growth.
Domestic brokerage house Kotak Institutional Equities said: “The events that have been unfolding recently corroborate our longstanding negative stance on the stock. Balance sheet deterioration has been quick, leaving very little time to react to the situation. The recent capital infusion is insufficient for the size of unrecognized problematic loans… We maintain sell with fair value at Rs 55”.
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