Yes Bank shares zoom 27% amid reports of takeover by SBI-led consortium; lender's m-cap surges to Rs 9,398.49 cr

New Delhi: Shares of Yes Bank zoomed 27 percent on Thursday amid reports that the government has given the go-ahead to State Bank of India and other financial institutions to take over the capital-starved company.

#MarketAtClose | Yes Bank surges 26% on reports of govt forming SBI-led consortium for stake buy pic.twitter.com/p4fEtCigpZ

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The scrip advanced 25.77 percent to close at Rs 36.85 on the BSE. During the day, it jumped 29.35 percent to Rs 37.90. The scrip witnessed a sudden rise after hitting a 52-week low of Rs 28.05. At the NSE, it gained 26.96 percent to close at Rs 37.20. [caption id=“attachment_5595711” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The company’s market valuation rose by Rs 1,926.49 crore to Rs 9,398.49 crore on the BSE. In terms of traded volume, 433.87 lakh shares of the company were traded on the BSE and over 78 crore shares on the NSE during the day. The government has given the go-ahead to State Bank of India (SBI) and other financial institutions to take over capital-starved Yes Bank, and an announcement is likely to be made soon, highly placed sources said on Thursday. The sources said the government has cleared a plan for an SBI-led consortium to acquire a controlling stake in the bank. Shares of SBI also closed 1.05 percent higher at Rs 288.30 on the BSE. During the trade, it hit a high of Rs 298.25 and a low of Rs 270.10. “As per media reports, SBI has been told to invest as a lead in a consortium in Yes Bank. Though we may see a big spike in price of Yes Bank and negative reaction in price of SBI, we recommend caution to retail investors,” Abhimanyu Sofat, Head of Research, IIFL Securities. The critical thing to watch would be percentage dilution of equity taking into consideration the conversion of existing bonds issued by Yes Bank into equity, he said. In a clarification to stock exchanges on reports that the government is said to have approved SBI’s plan to buy stake in Yes Bank, the state-owned lender said it would disclose developments, if any, as per Sebi regulations. “… we will abide by the timelines under Regulation 30 of SEBI (LODR) Regulations 2015 in disclosing the developments, if any in the matter to stock exchanges,” it added. Yes Bank said it would like to clarify that as on date, the bank has not received any such communication from RBI or any other government or regulatory authorities or from the SBI. “… we are unaware of any such decision. Therefore, we are not in a position to comment on such news item,” Yes Bank said in a filing to the stock exchanges. The bourses had sought clarification on the reports. Yes Bank, which is grappling with bad loans, is looking to raise fresh capital but the plans are facing uncertainties. It has also delayed announcement of December 2019 quarter results due to the ongoing crisis. Meanwhile, the BSE banking pack depicted a mixed trend, with Kotak Mahindra Bank rising 2.74 percent, RBL Bank 1.93 percent, IndusInd Bank 0.79 percent and HDFC Bank 0.23 percent, while City Union Bank fell 1.66 percent, ICICI Bank 0.74 percent, Axis Bank 0.66 percent and The Federal Bank 0.42 percent.