SMBC Initiates Talks to Acquire 51% Stake in Yes Bank. This news spurred a 10% surge in Yes Bank shares, signaling a new opportunity for investors.
Yes Bank Share: Yes Bank shares witnessed a 10% surge on Tuesday following reports that Sumitomo Mitsui Banking Corporation (SMBC), a Japanese bank, is in talks to acquire a 51% stake in Yes Bank.
Share Price Surge Following SMBC's Potential Stake
Yes Bank shares were trading at ₹18.22 on Monday, reflecting an approximate 2.76% increase on the BSE. In early Tuesday trading, these shares reached ₹19.44 per share. This surge is primarily attributed to the news of SMBC's plan to acquire a significant stake in Yes Bank.
SMBC's Largest Investment in India
Through this deal, SMBC could become the largest shareholder of Yes Bank. This deal is reportedly coordinated with State Bank of India (SBI), which currently holds a 24% stake in Yes Bank. Reports suggest that SMBC may acquire a 51% stake in Yes Bank, triggering a 26% open offer as per Indian regulations.
SMBC Receives RBI Assurance
The Reserve Bank of India (RBI) has verbally assured SMBC that it will be permitted to hold a majority stake in Yes Bank, although voting rights would be capped at 26%.
Buy or Hold?
If you are considering investing in Yes Bank shares, currently trading around ₹18.60, a potential upside of approximately 34% can be observed. However, this requires investors to overcome resistance levels between ₹19.90 and ₹20.80. Breaking through these levels could potentially push the share price up to ₹25.
