Shares of Yes Bank have been trending up for the past few sessions. In Friday’s session, this private lender stock ended up 3% while over the past week it has gained more than 5%. Similarly, over the past month, Yes Bank’s stock price has gone from ₹12:65 p.m. to ₹15 levels each, offering more than 18% return to its shareholders within this time horizon.
According to stock market experts, shares of Yes Bank are rising on the back of private lenders’ fundraising announcement and strong first-quarter earnings numbers. They said the stock is currently trading in the range of ₹12:50 p.m. to ₹4:20 p.m. and it can go until ₹19 on breaking the upper hedge on this range. However, they advised investors to buy Yes Bank shares only when it closes above ₹16.20 levels each.
On why Yes Bank shares are rising, Ravi Singh, Vice President and Head of Research at Share India, said, “Yes Bank stock has been rallying since the bank announced its plan to collect funds through rights issue, preferential allocation, etc. The bank also posted better results. -higher than expected earnings figures for the June 2022 quarter with a substantial drop in gross NPAs. However, limited upside is suggestive on the technical setup with a target of ₹17 to ₹18 levels each short term.”
On the Yes Bank stock chart, Ravi Singhal, CEO of GCL Securities, said, “Yes Bank stock is in the immediate range of ₹1:80 p.m. to ₹16.20. However, a wider range of Yes Bank is ₹12:50 p.m. to ₹4:20 p.m. and it can go until ₹18 to ₹19 levels each after clearing the upper obstacle placed at ₹16.20 levels each. Those who have Yes Bank shares in their portfolio are advised to update its trailing stop loss to ₹13.80 levels. However, one should only buy the stock when Yes Bank stock closes above ₹16.20 levels each.”
Yes Fundraising from the Bank
On Friday evening, Yes Bank announced an equity fundraising of approximately $1.1 billion (nearly ₹8,900 crore) from funds affiliated with two global private equity investors – Carlyle and Advent International, with each investor potentially acquiring up to 10% stake in Yes Bank. This amount will be raised through a combination of nearly $640 million (approximately ₹5,100 crore) in shares and about $475 million (almost ₹3,800 crore) through equity warrants.
Speaking about the fundraising, Prashant Kumar, Managing Director and Chief Executive Officer of Yes Bank, said, “We are extremely pleased to welcome such reputable investors as Carlyle and Advent International as partners, in achieving the Bank’s long-term strategy. This speaks to the inherent strength of the Bank’s franchise. We are excited about the additional opportunities this partnership creates for us and believe that both investors will play a crucial role in the Bank’s next phase of growth.”
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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