YES Bank Share price: Shares of private lender YES Bank rose 7 percent in Monday’s trading, taking its recent rise to a third consecutive day and reaching a two-year high of Rs 21.20, while falling by 19 in two trading sessions. rose .7 percent. JA Bank shares have risen since Friday, when the bank received approval from the RBI to raise fresh capital from Verventa Holdings and Carlyle Group, a subsidiary of funds managed by Advent International.
The RBI cleared each investor with respect to the proposed acquisition by each of them of up to 9.99 percent of the Bank’s paid-up share capital through subscription for shares and share warrants of the Bank, see separate letters dated 30 November 2022. .
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 (affiliate of funds advised/administered by Advent) (each an “Investor” and collectively the “Investors”) in shares with par value Rs. 2 (Rupees Two only) each and equity warrants of Yes Bank Limited (the “Bank” and together with the foregoing, the “Subscription Securities”),” adding: “In continuation of the Reserve Bank of India, issuing conditional approval to each Investors regarding the proposed acquisition by each of them of up to 9.99 per cent. of the paid-up share capital of the Bank by way of subscription for shares and share warrants of the Bank, see separate letters dated 30 November 2022, we hereby inform you that the Bank has 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 as per the respective investment agreements.”
What should investors do now?
Sumeet Bagadia, executive director at Choice Broking, advised positional investors to maintain the ‘buy on dips’ strategy with respect to Yes Bank shares, said, “Yes Bank shares have made a sideways trend breakout at Rs 18 apiece and the can go up to Rs 24 and Rs 28 short and medium term levels.Those who have Yes Bank in their stock portfolio are advised to keep trailing stop loss at Rs 17 and keep accumulating for Rs 24 and Rs 28 targets.
For those looking to buy Yes Bank shares, Choice Broking’s Sumeet Bagadia said, “YES Bank shares have already surged. So, one has to wait for the profit booking trigger and once it drops above Rs 18 levels only one can buy YES Bank shares for Rs 24 and Rs 28 targets with strict stop loss at Rs 17 levels.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart said the counter has broken out of an Inverse Head and Shoulder formation, with long consolidation and a Triangle breakout on the longer time frame.
“It retested its previous breakaway level and came to a V shape. It is trading above its all-important moving averages. The momentum indicator RSI (relative strength index) is also positive, while MACD (moving average convergence divergence) supports current strength. On the higher side, Rs 21 is the immediate resistance zone; above that, we can expect to reach Rs 24 levels in the near term. On the downside, Rs 17.5 is the strong support during any correction,” said Gour.
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