Yes Bank shares surge 6 pc on value buying after 5-day losing streak

New Delhi, Dec 12 () Reversing its losing streak, Yes Bank shares on Thursday settled with nearly 6 per cent gain which analysts attributed to value-buying and short-covering.

On the BSE, the scrip opened on a positive note and further climbed 12.5 per cent to Rs 48.15. It closed with a gain of 5.96 per cent at Rs 45.35.

On NSE, shares closed 5.84 per cent higher at Rs 45.30. During the day, it had risen 14.01 per cent to Rs 48.80.

The market capitalisation of the company stood at Rs 11,566.39 crore on the BSE.

In terms of volume, 241.64 lakh units of Yes Bank changed hands on BSE, while 39.81 crore scrips were traded on the NSE.

The counter was under selling pressure in the previous five trading sessions due to uncertainty over its USD 2-billion fund raising plan.

"Yes Bank shares has been consistently witnessing selling pressure amid high speculation of asset quality concerns and its inability to raise funds. This has led to significant selling from key shareholders of the bank including its promoters," Ajit Mishra, VP - Research, Religare Broking said.

The management has time and again clarified that the bank's asset quality has stabilised and has received investment proposals of over 2 billion dollars. However, nothing has yet been materialised for the bank, he further said.

While citing probable reasons of surge in the price of scrip on Thursday, Mishra said that several factors like short covering, anticipation of positive outcome regarding fund raising plan of the lender among other factors led to rise in the price of scrip.

Besides, he added that private sector banks were also trading in green on Thursday.

S&P BSE Private Banks Index ended with a gain of 1.07 per cent at 12,628.99.

Yes Bank after its board meeting on Tuesday said it would continue to evaluate other potential investors to raise capital up to USD 2 billion.

"The board is willing to favourably consider the offer of USD 500 million of Citax Holdings and Citax Investment Group and the final decision regarding allotment to follow in the next board meeting, subject to requisite regulatory approval(s)," it had said in a regulatory filing.

The binding offer of USD 1.2 billion submitted by Erwin Singh Braich / SPGP Holdings continues to be under discussion, it had added. SHW SRS MR MR