Yes Bank shares plunge 23% after Rana Kapoor, his two entities sell 2.16% in lender; m-cap down by Rs 4,829 cr

Yes Bank promoter Rana Kapoor and his group entities sold 2.16 percent stake worth Rs 510 crore in the lender even as its the shares plunged 23 percent on the BSE after the market speculation over the bank’s capital and liquidity conditions.

#MarketAtClose | YES BANK at fresh 10-year low, slips more than 22% pic.twitter.com/HpXVF0cXnV

— CNBC-TV18 (@CNBCTV18Live) October 1, 2019

The stake sale was done through an open market transaction on 26-27 September, reported PTI. As many as 255.03 crore shares of face value Rs 2 each were sold, with Kapoor and his family-owned entities—Yes Capital (India) Private Ltd and Morgan Credits Private Ltd—netting Rs 510.06 crore from the stake sale. After this, Kapoor and his group entities’ stake has now come down to 4.72 percent in the bank. [caption id=“attachment_3858755” align=“alignleft” width=“380”] A file photo of Rana Kapoor. AFP[/caption] Last week, Yes Capital, one of the promoter entities of Yes Bank, sold 1.8 percent stake in the private sector lender. The stake sale helped the promoter group entity to mop up around Rs 240 crore. Yes Capital said the proceeds would go to Franklin Templeton Asset Management, with whom its shareholding of Yes Bank was pledged. Last month, Morgan Credits had sold 2.3 percent stake in Yes Bank for Rs 337 crore to prepay a certain part of its outstanding dues to Reliance Nippon Life AMC. Meanwhile, Shares of Yes Bank went into a tailspin on Tuesday despite a positive opening, tumbling nearly 23 percent, amid worries over stress in the financial system. The scrip came under massive selling pressure in afternoon trade, giving up its early gains and plunged 29.91 percent to Rs 29.05 —its multi-year low —during the day on the BSE. However, the shares made a slight recovery and closed at Rs 32 apiece, down 22.80 percent. At the NSE, it cracked 22.22 percent to close at Rs 32.20. “The Indian equity indices witnessed sharp fall today following heavy selling in banking stocks due to rising fears of their exposure to troubled real estate/housing finance companies,” Ajit Mishra, Vice President, Research, Religare Broking said. It was the biggest loser on both the Sensex and Nifty. This is the fifth consecutive session of fall for Yes Bank when it tanked nearly 43 percent. During the five days of fall, the company’s market valuation eroded by Rs 4,828.94 crore. Yes Bank called such reports as “speculative, unsubstantiated and irresponsible. Shares of Yes Bank on Monday tumbled 15 percent amid concerns over its exposure to Indiabulls Housing Finance. Yes Bank in a statement on Monday said recent market rumours and reports appear to have generated a lot of speculation around the private sector lender. “We strongly refute them as being speculative, unsubstantiated, and irresponsible,” Ravneet Gill, MD and CEO, Yes Bank had said on Monday. — With PTI inputs