YES Bank Shares: According to sources, SBI may be trying to sell Rs 5,000-7,000 crore of YES Bank shares in a block deal. According to the article, SBI may avoid equity dilution if Youth Enterprise Scheme Bank shares are sold on the open market to meet capital needs.
Shares of YES Bank Ltd remained relatively stable in a market characterized by weakness on Thursday, despite reports indicating brokers urging SBI to offload shares of the private lender through block deals. According to CNBC Awaaz, sources suggest that SBI is considering selling YES Bank shares worth Rs 5,000-7,000 crore via block deals. The report indicates that SBI might opt for selling shares in the open market to meet its capital requirements, thereby avoiding equity dilution. The stake sale is anticipated to occur by March 31, as per the report.
As of the end of the December quarter, data revealed that SBI held 7,51,66,66,000 shares, equivalent to a 26.13 percent stake, in the Youth Enterprise Scheme. This stake was valued at Rs 22,900 crore in Thursday’s trading session. The monetization of this stake is expected to benefit SBI, especially considering the pension-related provisioning made by the state-run PSB in the December quarter. HDFC Bank, having recently obtained approval from the RBI to raise its stake in YES Bank to 9.5 percent, currently holds a 3 percent stake as of the end of the third quarter. The additional 6.5 percent stake that HDFC Bank plans to acquire is valued at Rs 5,747.20 crore based on Thursday’s trading price.
Yes Bank Shares: SBI to sell Rs 5-7K crore shares, report says; stock reacts.
At 11:13 am, YES Bank shares were trading at Rs 29.74 on the BSE, marking a decrease of 0.30 percent. Concurrently, the BSE Sensex experienced a decline of 650.41 points or 0.90 percent, reaching 71,501.59. Meanwhile, SBI shares surpassed the Rs 700 mark, rising by 3.71 percent to Rs 700.55. The stock reached a peak of Rs 718.80 today. ICICI Bank (2.61 percent), Axis Bank (1.57 percent), Kotak Mahindra Bank (1.32 percent), and IDFC First Bank (1 percent) also held stakes in the private lender. According to the CNBC Awaaz report, the sale of YES Bank shares by SBI may not incur any taxes, and there is no lock-in period for SBI regarding the sale of YES Bank shares. The report added that the SBI board would soon discuss the sale of percentage in YES Bank, with the proceeds intended to enhance the balance sheet liquidity.
SBI informed stock exchanges that it held meetings with Goldman Sachs AM, Nomura AM SG, Sentosa, Prudence, PG Investment Management, and M&G on Wednesday. Additionally, on Tuesday, the State Bank of India had meetings with Kotak Securities.
