Yes Bank’s Stock Surged 13% past month, Despite Carlyle Group Selling its 1.3% Stake

Yes Bank's Stock Surged 13% past month, Despite Carlyle Group Selling its 1.3% Stake
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On February 15, Yes Bank’s shares rose by 1.7% to reach Rs 29.5 per share. This increase followed Carlyle Group’s sale of a 1.35% stake valued at Rs 1,056 crore through an open market transaction, with an average price of Rs 27.1 per share.

Over the last month, Yes Bank’s stock has experienced a 13% surge, contrasting with a 1% decline observed in the benchmark Sensex.

According to bulk deal data, CA Basque Investments, an affiliate of the US-based Carlyle Group, sold 39 crore shares in Yes Bank. Morgan Stanley Asia purchased 30 crore shares at the same price, amounting to a stake valued at Rs 830.08 crore. This transaction has reduced Carlyle Group’s ownership in Yes Bank to 5.08% from 6.43% in December 2023. Previously, in December 2022, Carlyle Group had acquired a 9.99% equity stake in Yes Bank at Rs 13.78 per share.

Following the Reserve Bank of India’s approval for HDFC Bank to acquire a 9.5% stake in six banks, including Yes Bank, stake sales occurred. HDFC Bank plans to invest in these banks through HDFC Asset Management Company (AMC), HDFC Ergo, and HDFC Life Insurance.

In the third quarter of FY24, Yes Bank witnessed a significant surge in net profit, more than tripling to Rs 231 crore from Rs 51 crore in the corresponding period last year. This growth can be attributed to a decrease in provisions and an increase in other income. Additionally, net interest income increased by 2.3% year-on-year to Rs 2,016 crore during the quarter.

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