Yes Bank’s share price took a sharp hit on Tuesday, plunging more than 10% intraday to ₹20.71 on the Bombay Stock Exchange (BSE). This unexpected drop follows a wave of speculation, heavy trading activity, and a strong denial from the bank regarding takeover talks.
What’s Behind the Sharp Fall?
1. Heavy Block Deal Worth ₹2,022 Crore
– A major trigger for the sell-off was a large block deal involving the exchange of around 9 crore shares, which make up nearly 3% of the bank’s total equity. These shares were traded in multiple block transactions throughout the day.
– Market sources believe a private equity investor offloaded the stake, though the name hasn’t been confirmed publicly. The size and suddenness of this sale raised eyebrows and added pressure on the stock price.
2. No Takeover by Japan’s SMBC – Says Yes Bank
– Investor sentiment was also jolted by the bank’s official denial of any talks with Sumitomo Mitsui Banking Corporation (SMBC) of Japan. Rumors had spread that SMBC was planning to acquire a controlling stake in Yes Bank.
In its clarification, the bank said:
“We are not engaged in any discussions with SMBC or the Reserve Bank of India regarding a controlling stake transaction or strategic investment roadmap.”
-This statement directly contradicted speculation that had fueled a three-day rally in the stock prior to the crash.
3. Upcoming Board Meeting to Discuss Fundraising
Yes Bank also announced that it will be holding a board meeting soon to explore fundraising options. These may include:
- Issuing equity shares
- Raising money via debt securities
- Using methods like private placement or preferential allotment
While capital raising is common for banks, the timing — right after a large investor exited — has made the market nervous.
4. Market Volatility and Investor Uncertainty
– The stock had risen 8% just a day earlier on the back of the SMBC speculation. But the swift denial, coupled with the large block deal, caused a sudden reversal in sentiment.
– Analysts believe that until the fundraising plan is announced and clarity on long-term strategy emerges, the stock may remain volatile.