Tuesday, February 7, 2023
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Why Yes Bank shares are up 20% in two days

Yes, the bank’s shares have been on an upward trend for the past few years, despite the weakness in Dalal Street. After rising nearly 11 percent on Friday deals, Yes Bank’s share price opened with an upside gap today and then hit a 2-year high of 21.15 apiece, up nearly 20 percent in the last two trading sessions.

Shares of Yes Bank are rising after the disclosure of the private lender on Friday, where he informed Indian stock exchanges of the positive developments regarding new investments by Carlyle Group and Verventa Holdings Limited, according to stock market experts. They said that the share price of Yes Bank has given a sideways trend breakout on the chart pattern and it could reach up to 28 levels each short to medium term. They advised positional investors to maintain the buy-on dips strategy in the scrip until it is above 18 levels each.

Avinash Gorakshkar, Head of Research at Profitmart Securities, spoke about the reason for the rise in Yes Bank share price: “Shares of Yes Bank were up sharply on Friday after the private lender informed Indian stock exchanges of positive developments regarding new investment by Carlyle Group and Verventa Holdings Limited The private lender has alleged that the Reserve Bank of India (RBI) has given each investor conditional approval in respect of the proposed acquisition by each of them of up to 9.99% of the paid-up share capital of the Yes Bank This fundamentally strong news is expected to improve the bank’s asset quality, which has attracted market bulls’ appeal.”

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Yes Target Bank

Sumeet Bagadia, executive director at Choice Broking, advised positional investors to maintain the ‘buy on dips’ strategy regarding Yes Bank shares: “Yes Bank shares have made a sideways trend breakout on 18 levels each and it can go up to 24 y 28 short and medium term levels. Those who have Yes Bank in their stock portfolio are advised to maintain a trailing stop loss 17 and keep collecting for 24 y 28 goals.”

For those looking to buy Yes Bank shares, Sumeet Bagadia of Choice Broking said, “Yes Bank shares are already booming. So one has to wait for the profit posting trigger and once it moves above 18 levels, then only one can buy Yes Bank shares for it 24 y 28 targets enforce strict stop loss at 17 levels.”

Yes Bank news that fueled the share price

In its latest exchange communication, Yes Bank said: “This is in connection with the proposed investment by CA Basque Investments (CA Basque Investments is part of the group of entities doing business worldwide as ‘The Carlyle Group’) and Verventa Holdings Limited (affiliated of funds advised/managed by Advent) (each an “Investor” and collectively the “Investors”) in the shares of par value Rs.2 (only Rupees Two) each and share warrants of Yes Bank Limited (the “Bank” and together with the foregoing, the “Subscription Securities”),” adding, “In continuation of the Reserve Bank of India granting conditional approval to each Investor in respect of the proposed acquisition by each of them of up to 9.99% of the paid-up share capital of the Bank by subscription to shares and share warrants of the Bank vide separate letters dated 30 November 2022, we hereby inform you that the Bank is now received two more letters (separately for each investor) from the RBI regarding the proposed investment. Accordingly, the Bank will now enter into discussions with the Investors for the completion of the proposed capital increase, subject to various regulatory compliances and conditions precedent under the respective Investment Agreements.”

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disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We recommend that investors consult certified experts before making investment decisions.

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