YES Bank shares climbed 7% today. Here's why

After a three-day fall, shares of YES Bank climbed nearly 8 per cent in Thursday's trade after a media report suggested that the six-largest private bank was planning to sell up to 51 per cent of its stake for a target valuation of $8-9 billion, up from its current market capitalisation of $7.2 billion. As per the report, Citigroup's India unit has been enlisted to facilitate the search for a potential buyer. There was no exchange filing regarding this on stock exchanges. Business Today could not verify the news independently.

Following the report, the YES Bank stock rose 7.63 per cent to hit a high of Rs 22.56 on BSE. The scrip had fallen 12.5 per cent in the previous three trading sessions.

As per the report, YES Bank sent invitations to various domestic lenders, including the prevailing shareholders, for the participation. The private lender has initiated discussions with banks and financial institutions in West Asia, Europe and Japan for the sale of at least 51 per cent stake, as per the report. Any new promoter holding more than 26 per cent stake would require special approval from the Reserve Bank of India (RBI), as per central bank regulations.

The stake sale, the Mint report said would give State Bank of India (SBI), Life Insurance Corporation of India Ltd (LIC) and other shareholders a room to exit their 2020 investments in the bank.