YES Bank Share Price: Shares of private lender YES Bank soared soared 7 per cent in Monday’s trade, taking its recent rise to the third straight day, hitting a two-year high at Rs 21.20, while surging 19.7 per cent over two sessions of trade. YES Bank stock has been rising since Friday, when the bank received approval from the RBI to raise fresh capital from Verventa Holdings and Carlyle Group, an affiliate of funds managed by Advent International.
The RBI gave approval to each investor with respect to the proposed acquisition by each of them of up to 9.99 per cent of paid up share capital of the bank through subscription to equity shares and share warrants of the Bank vide separate letters dated November 30, 2022.
In its latest exchange communication, YES Bank said, “This is in relation to the proposed investment by CA Basque Investments (CA Basque Investments is part of the group of entities doing business globally as ‘The Carlyle Group’) and Verventa Holdings Limited (affiliate of funds advised/managed by Advent) (each, an “Investor” and collectively, the “Investors”) in the equity shares of face value Rs. 2 (Rupees Two only) each and share warrants of Yes Bank Limited (the “Bank” and together with the foregoing, the “Subscription Securities”),” adding, “Further to the Reserve Bank of India, issuing a conditional approval to each Investor with respect to the proposed acquisition by each of them of up to 9.99 per cent of paid up share capital of the Bank through subscription to equity shares and share warrants of the Bank vide separate letters dated November 30, 2022, we wish to hereby inform that the Bank is now in receipt of two further letters (separate to each investor) from the RBI in relation to the proposed investment. Pursuant to which, the Bank shall now engage with the Investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective Investment Agreements.”
What Should Investors Do Now?
Advising positional investors to maintain ‘buy on dips’ strategy in regard to Yes Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Yes Bank shares have given sideways trend breakout at Rs 18 apiece levels and it may go up to Rs 24 and Rs 28 levels in short and medium term. Those who have Yes Bank in their stock portfolio are advised to maintain trailing stop loss at Rs 17 and keep on accumulating for Rs 24 and Rs 28 targets.”
For those who want to buy Yes Bank stocks, Sumeet Bagadia of Choice Broking said, “YES Bank shares have already surged a lot. So, one should wait for the profit booking trigger and once it settles down above Rs 18 levels, then only one can buy YES Bank shares for Rs 24 and Rs 28 targets maintaining strict stop loss at Rs 17 levels.”
Pravesh Gour, Senior Technical Analyst at Swastika Investmart said the counter has broken out of an Inverse Head and Shoulder formation, with long consolidation and a Triangle breakout on the longer time frame.
“It retested its previous breakout level and rallied in a V-shape. It is trading above its all-important moving averages. The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength. On the higher side, Rs 21 is the immediate resistance zone; above this, we can expect the Rs 24 levels in the near term. On the lower side, Rs 17.5 is the strong support during any correction,” Gour said.
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