YES Bank: SBI may sell Rs 5,000-7,000 crore worth shares, says report; stock reacts
According to information cited by CNBC TV18, SBI may be considering a block deal sale of YES Bank shares valued between Rs 5,000 and Rs 7,000 crore. The report stated that if YES Bank shares are sold on the open market to meet capital requirements, SBI might be able to avoid equity dilution.
YES Bank Ltd.’s shares were flattish during Thursday’s typically lackluster trading day, according to a media source, despite brokers urging State Bank of India (SBI) to sell the private lender’s shares through block agreements. According to reports cited by CNBC Awaaz, SBI may be considering a block deal sale of YES Bank shares valued between Rs 5,000 and Rs 7,000 crore. The report stated that if YES Bank shares are sold on the open market to meet capital requirements, SBI might be able to avoid equity dilution. The riskAccording to data, at the conclusion of the December quarter, SBI had 7,51,66,66,000 shares, or 26.13 percent of YES Bank. As of the exchange on Thursday, this stake was valued at Rs 22,900 crore. Given that the state-run PSB made pension-related provisioning in the December quarter, it is believed that SBI will benefit from the stake monetisation.
At the conclusion of the third quarter, HDFC Bank had a 3% holding in YES Bank, having just got approval from the RBI to grow its stake to 9.5%. As of Thursday’s trading price, the 6.5% extra stake that HDFC Bank plans to purchase was valued at Rs 5,747.20 crore.
As of 11:13 am, YES Bank’s shares were down 0.30 percent on the BSE, trading at Rs 29.74. BSE Sensex was not moving.
The private lender also had shares held by ICICI Bank (2.61%), Axis Bank (1.57%), Kotak Mahindra Bank (1.32%), and IDFC First Bank (1%). According to the CNBC Awaaz article, there was no lock-in for SBI on the sale of YES Bank shares, and the deal may not have resulted in any taxes for SBI. The report stated that the SBI board would soon be debating the sale of YES Bank shares, and that the money raised from the stake sale would be utilized to increase balance sheet liquidity.
The business notified stock markets that SBI had met with representatives from Goldman Sachs AM, Nomura AM SG, Sentosa, Prudence, PG Investment Management, and M&G on Wednesday. Tuesday earlier,
