YES Bank shares in focus amid reports of Sebi probe on SMBC deal

Shares of YES Bank shall continue to hog the spotlight during the trading session on Friday amid the reports of probe by capital markets regulator Sebi. According to a report form MoneyControl, citing sources, Securities Exchange Board of India (Sebi) is probing disclosures made by YES Bank regarding the stake sale to se lender Sumitomo Mitsui Banking Corporation (SMBC).

The disclosure in question is the May 6 response offered by YES Bank to stock exchanges regarding media reports on a possible deal with SMBC. MoneyControl had reported the potential stake sale of the Japanese financial conglomerate but the India private lender called its report 'speculative' and 'not factually correct'. The bank also said that it is unaware of any information regarding the deal.

However, YES Bank announced the 20 per cent stake sale by State Bank of India (SBI) and seven other private lenders to SMBC, who would buy over 413 crore shares for Rs 13,482 crore at a price of Rs 21.50 apiece. The seven private lenders include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank.

"Sebi’s market rumour verification rules mandate true disclosure of the ongoing deals. The share purchase agreement was signed within three days of the Yes Bank response giving an indication that the deal was in advanced stage on May 6," reported MoneyControl citing a person with direct knowledge of the matter.

"However, investment bankers and legal advisers handling the deals generally advise against premature disclosure of deals. One needs to examine what was the status of the deal as on May 6." The financial platform, citing another source, said that the information regarding the deal was clearly price sensitive.

Shares of YES Bank have surged more than 21 per cent since the announcement of this deal. The private lender settled at Rs 21.53 on Thursday, rising more than 2.5 per cent for the day. It commands a total market capitalization close to Rs 67,500 crore. YES Bank shares have surged nearly 35 per cent in 2 months from its 52-week low at Rs 16.02 hit on March 12, 2025.

Besides SBI and other private lenders, LIC of India owns 3.98 per cent stake in YES Bank, while CA Basque Investments and Verventa Holdings own 6.84 per cent and 9.20 per cent stake in the lender respectively. Mutual Funds own 1.65 per cent stake in YES Bank. Nearly 62.38 lakh retail investors own YES Bank shares up to Rs 2 lakh.