Yes Bank's public shareholders lose Rs 7,000 crore post RBI takeover
Public shareholders of Yes Bank faced bigger losses on the RBI's latest action on the private sector lender with Friday's stock price of Rs 16.60, meaning that their stake value now stands at Rs 3,880.91 crore against Rs 10,976.82 crore in December 31, a loss of Rs 7,092 crore and it could be more if the stock price is hammered more in coming days.
And since these shareholders are not there in the new scheme of things, their recovery, through higher value of their stake, is near impossible. They lost Rs 9,691 crore since December after the Reserve Bank of India (RBI) took control of private sector lender when its stock price hit all time loss of Rs 5.5 intra day.
Public shareholders of Yes Bank are 25 mutual funds, 238 foreign portfolio investors, four financial institutions and banks, the LIC and 11 qualified institutional buyers among others which held 91.67 per cent stake in the lender as on December 31, 2019.
With 233.79 crore shares held by public shareholders as on quarter ended December 2019, the value of their stake stood at Rs 10,976.82 crore with respect to closing price of Rs 46.95 on December 31. With the stock price on Friday at Rs 16.60, assuming that the same stake of shareholders till now, the value of their stake now stands at Rs 3,880.91 crore.
Public shareholders lost Rs 9,691 crore amid RBI action on YES Bank on all time low stock price, said an analyst.
Public shareholders of Yes Bank had a notional loss of Rs 9,700 crore after YES Bank stock price fell to its intra day low of Rs 5.5 on BSE, said former banker.
According to analysts, investors took Yes Bank episode very negatively, raising questions on the stability of the overall Indian financial system.
The stock hit its all-time low of Rs 5.55 on Friday after the RBI placed the lender under a moratorium, capping deposit withdrawals at Rs 50,000 per account for a month and superseded its board. The loss in share price since December has brought the value of the public shareholders' stake to Rs 1,285.88 crore today on an intra day basis.
Market capitalisation of the private lender fell to Rs 1,402 crore when the stock fell to Rs 5.5. That's a loss of nearly Rs 10,572 crore in market cap when compared to the closing market cap of Rs 11,974 crore on December 31, 2019. The shareholders of promoters and promoter group held 8.33 per cent stake or 21.24 crore shares in the bank at the end of the December quarter.
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