Yes Bank got two letters from the RBI confirming approval for the bank to carry out the planned capital raising.
Yes Bank’s stock increased by almost 7% in trading today, reaching a two-year high of Rs 21.20 and gaining 19.7% over the previous two trading sessions. Since Friday, when the bank gained RBI clearance to raise new capital from Verventa Holdings and Carlyle Group, an arm of funds controlled by Advent International, the price of Yes Bank shares has increased. Yes Bank said in July that the two international private equity firms will each invest a total of Rs 8,898 crore to acquire a 9.99% interest in the business.
According to a statement by Yes Bank to stock markets, the RBI gave “conditional permission to each Investor with regard to the planned purchase by each of them of up to 9.99% of paid up share capital of the Bank through subscribing to equity shares and share warrants of the Bank.” The bank has been given approval to complete the proposed capital raising, subject to a number of regulatory compliances and restrictions, according to two further letters the RBI gave to Yes Bank.
“According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart, the counter has “broken out of an inverted head and shoulders form pattern on the daily chart with extended consolidation and a triangle breakout on the longer time frame.” It rallied in a V-shape and challenged its earlier breakthrough level. It is currently trading above its crucial moving averages. While the momentum indicator MACD (moving average convergence divergence) is sustaining the present strength, the relative strength index (RSI) is also poised favourably. On the upside, Rs 21 is the immediate resistance area; over this, we may anticipate the levels of Rs. 24 in the short term. On the downside, Rs 17.5 is the firm support during any reversal.
Following the RBI’s approval of the Carlyle and Verventa deal on Friday, the price of YES Bank shares increased almost 19% in only two days to reach a two-year high on Friday. The planned capital augmentation plan by Carlyle Group and Verventa Holdings for YES Bank received final approval from the Reserve Bank of India (RBI). According to Akhilesh Jat, Category Manager – Equity Research, CapitalVia Global Research, “Breakout of key resistance level with significant trading volumes reflecting the strength in the upward trend.”
“Since private equity (PE) investors like Carley & Advent entered the institution with the intention of remodelling it, the stock of Yes Bank has been actively traded and is generating significant volume. The Reserve Bank of India (RBI) gave YES Bank the ultimate go-ahead for its proposed capital increase plan from the Carlyle Group and Verventa Holdings on Friday by sending two letters to the bank. Such investors would, over time, help to increase investor confidence. story. Following a protracted spell of stabilisation in the Rs 15–18 level range, Yes Bank is projected to resume its upward trend and likely to expand further in the Rs 22–25 area over the next few months. For the medium to long term, we have high hopes for the industry.