YES Bank rises 3.5% intra day on sale of stake worth Rs 645 crore in Fortis Healthcare

Shares of private lender YES Bank rose 3.5% intraday after the bank announced that it sold 6.77% stake in Fortis Healthcare Limited for Rs 645 crore.

In a bulk deal, YES Bank offloaded its remaining stake shares at an average price of Rs 130.27, valuing the transaction size at Rs 645.09 cr and completely exited the from the hospital chain' shareholding.

YES Bank shares climbed 3.5% to Rs 41 on the BSE against the last closing of Rs 40. YES Bank share price has been falling over cash crunch and liquidity issues faced by the private lender. The stock price of YES Bank has fallen 77% year-to-date, 40% in one month and more than 11% in a week.

"YES Bank Limited recovers Rs 645 crore of Religare exposure through sale of a 6.77% block of Fortis Healthcare Limited shares," the statement read.

"YES BANK Limited ("the Bank") has sold 5,10,99,265 equity shares having nominal value of Rs 10 each, constituting 6.77% of the paid-up share capital of Fortis Healthcare Limited ('FHL') as at June 30, 2019, in various tranches last being on October 14, 2019 resulting into a change in holding of the Bank by more than 2% of the total shareholding of FHL, from the last disclosure made by the Bank on June 10, 2019."

YES Bank has been selling stake in Fortis Healthcare since March 2018. With an approximate 17% stake, YES Bank had become largest shareholder in the hospital chain in March 2018, after the consortium of lenders called in pledged shares by the company's promoters, the Singh brothers.

Through this transaction, the bank has reduced its exposure to the Religare Group, the statement read.

At the end of September quarter, YES Bank owned 4,95,21,840 shares or 6.56% in Fortis.

By Rupa Burman Roy

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