Yes Bank shares bounce back after promoter company sells part of stake in lender; zoom over 8%

New Delhi: Yes Bank shares on Friday rebounded, rising sharply by over 8 percent, after one of the promoter entities of the company sold a part of its stake. The scrip, which faced severe drubbing in the previous trade, jumped 8.21 percent to Rs 58.60 on the BSE on Friday. On the NSE, it advanced 8.41 percent to Rs 58.65. Morgan Credits Private Limited (MCPL), a promoter group firm of Yes Bank, on Thursday said it has sold 2.3 percent shareholding in the private sector lender. [caption id=“attachment_5595711” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “The proceeds will be solely utilised to prepay substantial portion of outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM),” the company said in a regulatory filing. Morgan Credits in April 2018 had placed rated, zero coupon, NCDs amounting Rs 1,160 crore with RNAM (the only borrowing of MCPL), it said. Meanwhile, in a filing to the BSE on Friday morning, the company said as has been publicly disclosed, one of the promoter entities of Yes Bank sold a part of its stake yesterday (Thursday). This sale was effected purely to deleverage the debt of this entity. “The board of directors of Yes Bank would like to state that the financial position of the bank is sound and stable, its operating performance continues to be robust and its growth plans stay firmly on track,” it added. Shares of Yes Bank on Thursday plummeted nearly 16 percent after a Moody’s report said the Altico default may be credit negative for banks given their significant exposure to the real estate sector.