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7 banks like Axis Bank, Kotak Mahindra, ICICI and HDFC will also sell their 6.81% stake in Yes Bank.
Japanese company Sumitomo Mitsui Banking Corporation (SMBC) has announced a 20% stake in India’s Private Sector Bank Yes Bank. The deal has been done at Rs 13,483 crore with a price of ₹ 21.5 per share. State Bank of India (SBI) will sell 13.19% share for Rs 8,889 crore in this deal.
The remaining 6.81% stake will be purchased from 7 banks like Axis Bank, Kotak Mahindra, ICICI and HDFC for Rs 4,594 crore. Yes Bank has given this information in exchange filing on Friday. After the news of the deal, the bank’s shares climbed 10% on BSE to close at ₹ 20.05.
Deal will be completed after the approval of the Reserve Bank
The deal will be completed after the approval of regulators like RBI and CCI. SMBC President Akihiro Fukutome said that India is a priority for us. This investment with Yes Bank is part of our long -term strategy. At the same time, CEO Prashant Kumar of Yes Bank said that the investment of SMBC will give new pace to our growth. SBI will still be our important partner.
Yes Bank shares up 10% today
Due to the news of the deal, there was a big jump in the stock of Yes Bank on Friday. The stock shut down by 10% with a 10% rupee of Rs 20.05. Hua company shares have given a return of 16.84% in 1 month. The stock has climbed 13.79% in the last 5 days. Yes Bank’s market share is more than 62 thousand crore rupees.
There was talk to buy stake in 2023 too
Earlier in 2023, SMBC wanted 51% of voting rights at Yes Bank, but due to Indian law (26% voting cap), the deal could not be done.
This time the SMBC has accepted the range of 26% voting rights, but the company wants to control the management by nominating its directors in the board of YES Bank.
Yes Bank’s 1,200+ branches in more than 710 countries
Yes Bank, banking and financial survival provides. The bank has 1,200+ branches, 1300+ ATMs and 8.2 million customers in more than 710 countries. Yes Bank founder is Rana Kapoor. He established this bank in 2004. The bank’s managing director and Chief Executive Officer (CEO) is Prashant Kumar.
