SMBC Deal news The share of Yes Bank rises more than 8%, market valuation increased by Rs 1,415 crore
New Delhi:
Today, on the morning of Monday, May 12, the stock market opened up in Yes Bank Share Price. The bounce came after the news of Japan’s Sumitomo Mitsui Banking Corporation (SMBC) buying a 20% stake in Yes Bank. Yes Bank Stock Price rose by 8.7% to Rs 21.74 on BSE, while it was seen trading 8.39% to Rs 21.70 on NSE.
The bank’s market valuation increased by Rs 1,415 crore to Rs 64,123.38 crore.
SMBC becomes the largest shareholder of Yes Bank
State Bank of India (SBI) and seven other banks together have sold their total 20% stake in Yes Bank to SMBC of Japan. The total value of this deal was Rs 13,483 crore, which is considered to be the biggest foreign deal ever in the Indian banking sector. After this deal, SMBC will become the largest shareholder of Mumbai -based Yes Bank.
SBI sold 13.19% of the 20%, which gave it around Rs 8,889 crore. The remaining 6.81% stake was sold by seven other banks, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank. These banks received an amount of about Rs 4,594 crore from this stake.
These investors were part of the 2020 reconstruction scheme
Let us know that SBI and the remaining seven banks had invested it in March 2020 under the reconstruction plan of Yes Bank. Now, through this deal, they are transferring a large part of their share to SMBC. According to the information given by SBI, the bank has approved the sale of 413.44 crore shares i.e. 13.19% stake. In lieu of this stake, the bank will get Rs 8,888.97 crore.
This big deal with SMBC is not only a positive signal for Yes Bank, but also reflects the growing trust in foreign investment in the Indian banking sector. This has not only killed the shares of Yes Bank, but in the coming days too, it is expected to keep a good boom.