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Yes Bank shares tumble 10% on reports of SEBI probe post FPO announcement

Investors borrowed 95,99,987 shares worth Rs 5.9 crore for an interest rate of around Rs 7 per share. Investors borrowed these shares for a one-month period, with settlement due on August 6.

July 13, 2020 / 05:52 PM IST

Yes Bank shares tumbled 10 percent on July 9 after reports suggested that Securities and Exchange Board of India (Sebi) may look into a large amount of share transaction of the bank under the Securities Lending and Borrowing Mechanism (SLBM).

On July 9, investors borrowed 95,99,987 shares worth Rs 5.9 crore for an interest rate of around Rs 7 per share. Investors borrowed these shares for a one-month period, with settlement due on August 6.

These transactions took place a day prior to the announcement of the bank’s floor price for its Follow-on Public Offer (FPO). The Enforcement Directorate (ED) is expected to file the second prosecution complaint in the Yes Bank money laundering case on July 13.


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The stock price has tumbled over 49 percent in the last 6 months and was trading at Rs 22.50, down Rs 3.00, or 11.76 percent at 09:23 hours. It has touched an intraday high of Rs 23.50 and an intraday low of Rs 21.20.

ED may file the complaint against 13 individuals and entities including Dewan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan. Yes Bank had sanctioned a loan of Rs 750 crore to Belief Realtor Pvt. Ltd, a company controlled by the DHFL group. The loan was sanctioned on June 18, 2018, by the Management Credit Committee (MCC) headed by Rana Kapoor, who was then the MD and CEO of Yes Bank.

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Capital Raising Committee (CRC) of the Board of Directors of the Yes Bank at its meeting on July 10 has approved the floor price at Rs 12 per equity share and cap price at Rs 13 per equity share. A meeting of the CRC will be be held on July 14 for the allocation of equity shares to successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price.

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According to Moneycontrol SWOT Analysis powered by Trendlyne, Yes Bank has high debt with the company having high interest payments compared to earnings. MFs have also decreased their shareholding last quarter with the stock showing weak momentum - Price below short, medium and long term averages.

Moneycontrol technical rating is very bearish with moving averages and technical indicators being bearish.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​
Sandip Das
first published: Jul 13, 2020 09:56 am
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