Shares of Yes Bank jumped 6% on June 2 ahead of the lender's board meet on June 3 to consider fundraising.
On May 28, the lender announced that its Board of Directors will meet on Tuesday, June 3, 2025, to consider a proposal for raising capital through the issuance of equity shares, debt securities, or other eligible financial instruments.
According to the company's release on May 28, the fundraising may be executed via private placement, preferential allotment, or other approved modes, subject to requisite regulatory and shareholder approvals.
The announcement comes just weeks after State Bank of India (SBI) revealed plans to offload a significant portion of its stake in YES Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC).
At 10:26 am on June 2, Yes Bank shares on NSE were trading 5.7% higher at Rs 22.7 apiece. The 52-week low of the stock is Rs 16 and 52-week high is Rs 27.44. The market capitalisation of the stock is Rs 71,200 crore.
On May 9, Yes Bank announced that SMBC will acquire a 20% stake from its shareholders, including the State Bank of India and several Indian banks, which had participated in the banks' reconstruction scheme in 2020, for around Rs 13,480 crore.
The Japanese banking giant is also expected to infuse fresh capital into YES Bank equivalent to an additional 6–7% stake.
If the fund infusion materialises, SMBC may be required to make an open offer to Yes Bank shareholders, potentially raising its total stake to as high as 51%, which would mark a transformative shift in the bank’s ownership and control.
Meanwhile, Economic Times reported on June 2 that SMBC is preparing to approach Reserve Bank of India for a licence to operate a wholly-owned subsidiary. The move by the Japanese group is seen as part of a plan to buy a controlling stake in Yes Bank.
Recently, RBI permitted Emirates NBD, which is the frontrunner to acquire a majority stake in IDBI Bank, to set up a wholly-owned subsidiary.
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