Shares of YES Bank fell 13% to an 8-month low of Rs 14.40 on the BSE in intraday trade on Monday after a three-year lock-in period under the Reserve Bank of India’s (RBI) rebuilding scheme 2020, which ended today.
The stock is trading at its lowest level since July 2022. It corrected 42% from its 52-week high of Rs 24.75 on December 14, 2022.
The “YES Bank Limited Redevelopment Plan 2020” (“Scheme”) was approved by the Central Government and came into effect on March 13 2020.
YES Bank notified the stock exchange on Sunday, March 12, 2023, that the shares would be issued through the automatic depository system before the market open (SOD) on March 13, 2023, without further action by the bank.
State Bank of India (SBI) is taking an initial capital injection of Rs 6,050 crore to acquire about a 48% stake in YES Bank as part of the Reserve Bank of India’s Reconstruction Scheme 2020. Under the plan, the minimum price is Rs 10 per share, and all investors have a lock-in period of 3 years until March 2023, which means no one can sell old shares in the secondary market within three years. Also, under the plan, SBI has until March 2023 to hold at least 26% of the shares.
SBI’s initial 48% stake has fallen to around 26% by December 2022 due to the gradual dilution of fundraising.
At 1:40 pm, YES Bank was down 4% at Rs 15.83 on a jump of more than two-fold in its last two-week average trading volume. A combined 520 million equity shares, representing 1.8% of the total equity of Yes Bank, had changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was down 1.2% at 58,448.