The stock has lost more than 50 percent of its value in last three months amid corporate governance and asset quality concerns.
Shares of Yes Bank were down more than 4 percent at Rs 68.75 intraday on September 12 amid reports of co-founder Rana Kapoor planning to sell his stake.
The stock, which rose 13.5 percent in the previous session, has lost more than 50 percent of its value in the last three months amid corporate governance and asset-quality concerns, though intermittently it has seen buying interest.
At 1145 hours, it was quoting at Rs 68.75, down Rs 2.85, or 3.98 percent, on the BSE.
"We are in fairly advanced level of talks right now," Ravneet Gill, chief executive and managing director of the corporate and retail bank, told Reuters in an interview recently.
Gill said the stake sale was initially likely to be less than 10 percent but could rise, describing the buyer as one of the world's top three technology companies that had not previously invested in a bank. He did not name the investor.
In a stock exchange notice on September 10, Yes Bank said news about a stake sale was “speculative”, adding it was looking to raise funds as a normal part of business.
“The bank in the usual and ordinary course of its business continues to explore various means of raising capital/funds through issuance of securities to diverse set of investors, in order to meet its business/ regulatory requirements, subject to compliance with prescribed procedures and receipt of statutory regulatory approvals,” it said.
The board has given India’s fourth largest private lender the go-ahead to raise more growth capital. It has approval to raise $1.3 billion but aims to bring in an additional $1 billion to $1.2 billion via a preferential allotment.
Under Indian central bank rules, an individual shareholder cannot hold more than 15 percent stake in a bank.
Sources have told Moneycontrol that Kapoor is in talks with Paytm to sell his stake in the bank.
In August, he sought out Vijay Shekhar Sharma, the founder and CEO of the Noida-based mobile payment startup, and offered to sell his stake and those of his family members for Rs 1,800-2,000 crore, a source said.
At current valuations, the shareholding of Kapoor and his family members is worth Rs 1,550 crore.(With inputs from agencies)Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.