YES Bank share gains most on Sensex, Nifty amid reports global PE firms eyeing stake in lender

YES Bank share price rose in early trade today after amid reports that global private equity firms - TPG, The Carlyle Group and Farallon Capital - were seeking to buy large strategic stakes in the private lender. The timing of PE firms evincing interest in YES Bank is significant since all pledged shares in the private sector lender have been sold.

YES Bank share opened 9.02% higher at Rs 45.95 compared to the previous close of Rs 42.15 on BSE. The mid cap stock is trading below its 20 day, 50 day, 100 day and 200 day moving averages. YES Bank share hit a 52-week high of Rs 285.90 on April 3, 2019 and 52-week low of Rs 29.05 on October 1 this year. The stock was the top gainer on both on Sensex and Nifty today. 

On Nifty,  it was trading 4.15% higher at Rs 43.90 after opening 9.01% higher at Rs 45.95. Reports said talks to buy stake in YES Bank have advanced substantially in the past few days which could result in one or more private equity firms buying a significant stake in the lender infusing much needed growth capital the lender needs to raise its Common Equity Tier 1 (CET1) capital.

CET1 capital refers to core capital of a bank meant to protect it against unexpected losses, such as those that occur during a financial crisis.

The bank has been in a fire-fighting mode after a crash in its market capitalisation since last year.  The YES Bank stock has nosedived from Rs 404 in August last year to Rs 42.15 now.