YES Bank jumps 11% amid reports of talks with strategic investors

Shares of YES Bank rallied nearly 11 percent intraday on October 7 after a media report said that the private lender was in talks with strategic investors.

The stock has rallied 43 percent in three days. It was quoting at Rs 45.90, up fRs 3.75, or 8.90 percent, on the BSE at 1430 hours.

Yes Bank is in talks with three technology companies, including software major Microsoft, for a strategic investment, Mint quoted unnamed sources as saying.

“The top management of bank held discussions with Microsoft as part of the bank’s ongoing strategy to sell a minority stake to a global tech company,” the report said.

The private lender could sell 15 percent through a fresh equity issuance. Such a stake sale could help Yes Bank gain Rs 2,000 crore, the report said .

The Economic Times reported that the bank was said to be in talks with three private equity (PE) players — TPG, The Carlyle Group and Farallon Capital — for a stake sale.

The lender has been exploring different options for raising $1.2 billion.

In a recent conference call, Chief Executive Ravneet Gill said YES Bank’s operating metrics and performance were “absolutely sound” and the lender had enough liquidity.

Sources told CNBC-TV18 that YES Bank had given big bonuses to employees to retain talent and the payout could be spread out in 30:40:30 ratio.

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