Yes Bank shares set to react after Sumitomo buys 20% stake from SBI-led consortium
Published on 12/05/2025 06:26 AM
Yes Bank shares set to react after Sumitomo buys 20% stake from SBI-led consortiumYes Bank had ended 10% higher on the final trading day of last week, in anticipation of the deal. It remains to be seen how much of that reaction is already priced in.By Hormaz Fatakia May 12, 2025, 6:26:06 AM IST (Published)2 Min ReadShares of Yes Bank Ltd., the Mumbai-based private lender, will be reacting to developments from last week, where Japanese financial institution Sumitomo Mitsui Banking Corporation, acquired a 20% stake from State Bank of India Ltd., and a consortium of lenders, who had rescued the bank back in 2020.
SMBC will be shelling out close to ₹14,000 crore for that 20% stake, of which 13% will be acquired from SBI, India's largest lender, and the rest from lenders like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank, all of whom will be making a partial exit from the lender.
While the stake sale is set to fetch SBI over $1 billion or close to ₹9,000 crore, the other lenders, based on the stake they sell, will gain between ₹330 crore and ₹1,300 crore.
The stake will be acquired at ₹21.5 per share, which is a 7.5% premium to Yes Bank's closing price last Friday. The stock had ended 10% higher on the final trading day of last week, in anticipation of the deal. It remains to be seen how much of that reaction is already priced in.
Barring SBI and lenders having stake, Yes Bank has nearly 62 lakh small retail shareholders, or those with authorised share capital of up to ₹2 lakh, who have a 22.55% stake in the lender, at the end of the March quarter.
The lender does not have a promoter after its founder and CEO Rana Kapoor was not given an extension by the Reserve Bank of India, back in 2019.
Vervanta Holdings Ltd. has a 9.2% stake in the lender, while CA Basque Investments has a 6.84% stake. They are not among the selling shareholders in this transaction.
Shares of Yes Bank had ended 10% higher on Friday at ₹20.05.
Also Read: Yes Bank, SBI to gain from Sumitomo stake buy; but what’s in it for SMBC?Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market todayYES BankYes Bank Share PriceYes Bank Shares