After having saved the cash-strapped Yes Bank from going bust, three of the banks, which invested in the troubled private lender at an RBI-guided bailout price, sold some part of their equity share allocations, according to the shareholding data available on the stock exchanges. Uday Kotak’s Kotak Mahindra Bank sold almost 9.4% of its total shareholding that it picked up in Yes Bank. Federal Bank sold 19.5% of its entire shareholding; and IDFC First Bank sold 16% of its total shares. The banks, which bought shares in Yes Bank as part of the bailout were allowed to sell only 25% of their equity stakes each, with the remaining 75% in a three-year lock-in period. Apart from these three lenders, all other investors, including State Bank of India, did not sell any of their equity holdings till the end of March this year.
Six banks and Housing Development Finance Corporation (HDFC) invested Rs 10,000 crore in Yes Bank in the second week of March under the Yes Bank Reconstruction Scheme 2020, picking up equity stake at Rs 10 per share. The shares, allotted to the institutional investors on March 15, jumped a whopping 60% from its previous closing to trade at Rs 58.65 per share. This meant a surge of Rs 48.65 per share for the equity shares held by the seven institutional investors, growing their investment six times in just two days.
Kotak Mahindra Bank invested Rs 500 crore for 50 crore shares of Yes Bank; now Kotak Mahindra Bank’s shareholding in Yes Bank has fallen to 45.27 crore shares. Federal Bank, another struggling private lender, invested Rs 300 crore in Yes Bank and received 30 crore shares, now it holds 24.13 crore shares. IDFC Bank was the smallest investor, shelling-out Rs 250 crore for 25 crore shares; by the end of the January-March quarter, the lender was left with 20.97 crore equity shares.
The biggest investor in Yes Bank was India’s largest public lender State Bank of India (SBI). The PSU bank invested Rs 6,050 crore for 605 crore shares. SBI Chairman, Rajnish Kumar had on March 17 clarified that SBI will stay fully invested in Yes Bank for the entire lock-in period despite having a lock-in restriction of 26% only. SBI has stayed true to its word so far. ICICI Bank and HDFC, the other two big investors, put in Rs 1,000 crore each for 100 crore shares; none sold their equity holding in Yes Bank till the end of March 2020. Other investors included Axis Bank and Bandhan Bank, getting 60 crore and 30 crore shares respectively. Both have held on to the shares allotted.
All Yes Bank shareholders were put under a lock-in period of three years under the Yes Bank Reconstruction Scheme 2020. Under this, all shareholders with 100 shares of more had 75% of their equity shares locked-in for a period of three years.
Eqwires Research Analyst
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company
Call: +91 9624421555 / +91 9624461555