YES Bank Shares: YES Bank shares on Friday hit a high of Rs 15 amid reports that Carlyle and Advent were close to acquiring a large stake in the firm and quarterly results. YES Bank shares today opened with an upside gap and hit an intraday high of Rs 15 per share, logging around a 5 per cent rise from its Thursday’s close of Rs 14.30 apiece on NSE. The stock has zoomed 18 per cent in the past one month.
This comes after the private lender tied up with JC Flowers Asset Reconstruction Co for the sale of its bad loans. Media reports have said Carlyle’s and Advant’s top brass have held a series of meetings this week with the senior management of YES Bank and the State Bank of India, the largest shareholder in the private lender, as well as the Reserve Bank of India (RBI) officials to fine-tune the contours of the deal.
The potential investment size could be $1 billion, the Economic Times reported. The bank is valued at around $4 billion. It said the stake sale would likely be in the form of preferential warrants, which can be converted into shares on a future date.
Analysts said the scrip could see profit booking at its immediate hurdle of Rs 16, but a decisive breach of the same, if materialises, could lead to upsides of 25-40 per cent. On the downside, they see Rs 13.20-13.60 levels offering support to the index.
Santosh Meena, Head of Research at Swastika Investmart said, “YES Bank Ltd. is expected to post a good Q1 FY23 result in line with its peers. We anticipate the bank to witness a growth in advances and an improvement in asset quality compared to the same quarter previous year, albeit Q1 FY22 was severely impacted by the delta wave. Hence, YES Bank has generated significant interest & buzz from the investors and witnessed a whooping around 17 per cent return in the last month.”
Speaking on the reasons that has fueled YES Bank share price today, Ravi Singhal, CEO at GCL Securities said, “Market is expecting strong Q1 earning and there is strong buzz that YES Bank may announce its NPA below 2 per cent during the announcement of its first quarter results for the financial year 2022-23. The Dalal Street bulls are expecting some big investment deals after strong Q1 numbers on Saturday. So, the current rally in YES Bank shares are completely speculative and one needs to maintain strict stop loss as market will remain closed on Saturday and the stock may open any side on Monday.”
Vikas Jain of Reliance Securities said the stock has been consolidating well and the momentum should continue because it has crossed multiple moving averages on the weekly and monthly charts.
“With a strong volume, the stock has broken from the band of the 200-day moving average. The first strong resistance should come in at around Rs 18.5-90. Strong support should be seen at Rs 12.5-13 levels, where the stock was languishing earlier. Any decline towards Rs 13.2-13.60, which is a band of averages, should be a good buy opportunity for targets of Rs 18.5-19,” Jain said.
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