YES Bank shares drop 10% on block deal buzz; board meeting on fundraising in focus

Shares of YES Bank fell 9.5% to a low of ₹21.06 on Tuesday on the NSE, following reports of a large block deal involving a 3% equity stake in the private lender, ending a three-day winning streak.

The stock opened at ₹22.93 and, as of 11:47 AM, the stock is trading at ₹21.17, down 9.06% from the previous close of ₹23.28. Despite the intraday declines, the stock has gained 18.84% year-to-date.

In early trade on Tuesday, a massive block deal saw 9.4 crore shares of YES Bank change hands, accounting for 3% of the bank’s total equity, according to a CNBC TV18 report. The shares were transacted at an average price of ₹21.50, putting the overall deal size at roughly ₹2,022 crore.

The steep fall follows speculation around Sumitomo Mitsui Banking Corporation (SMBC) acquiring a controlling stake in Yes Bank. Reports on Monday said SMBC had sought RBI approval to set up a wholly owned subsidiary in India — viewed by many as a precursor to a larger play in Yes Bank.

However, YES Bank issued a clarification today, distancing itself from the media report. “The bank is not privy to discussions in relation to matters stated in the article. References to the bank having ‘road map’ discussions with the RBI are factually incorrect,” it said in a stock exchange filing.

The correction comes just ahead of Yes Bank’s board meeting scheduled for later today to consider fundraising proposals, including equity or debt via private placement or other permissible routes.

Last month, SMBC had agreed to acquire a 20% stake in Yes Bank from existing stakeholders, including SBI and several private lenders that had backed Yes Bank during its 2020 reconstruction, for nearly ₹13,480 crore.

Additionally, SMBC is reportedly expected to infuse further capital, potentially taking its stake up by another 6-7%.