Yes Bank hits upper circuit after LIC raises stake
Yes Bank has hit upper circuit after reports of LIC raising stake in the private sector lender. After facing months of uncertainty and troubles, Yes Bank has finally seen positive news. The bank has successfully raised Rs 15,000 crore during FPO. LIC has purchased 4.23 percent stake in Yes Bank from open market. LIC currently holds almost 5 percent stake in Yes Bank.
In its filing to the stock exchanges, LIC informed that it has purchased 106 crore shares of Yes Bank from open market. Yes Bank stock has jumped for two consecutive sessions. Today, the stock has hit upper circuit with 8 crore shares in demand.
The day Yes Bank announced FPO pricing, the stock started its decline. Right now, Yes Bank is trading at half the valuation it had before FPO pricing was announced. However, there is a high chance that Yes Bank stock will move back to its earlier trading range.
Earlier, Moody’s investor service raised the ratings of Yes Bank issue to B3 from CAAA+.
The major trouble for quick rise in Yes Bank is 5 percent circuit. Right now, this stock with massive volumes on the exchange, can only rise or fall by 60 paisa (5% of Rs 13) and it will take many sessions for Yes Bank to recover. Medium and long term investors in Yes Bank will need patience as the stock recovers from its recent lows.