Yes Bank on Thursday announced that LIC has purchased 105.98 crore shares, reflecting 4.23 per cent stake, of the private lender through open market deal. With the fresh acquisition, the hold of LIC has increased from 0.75 per cent to 4.98 per cent.
In the afternoon session, share price of Yes Bank were trading 4.08 per cent up at Rs 14.02 in the BSE. Earlier in the day it had touched a high of 4.97 per cent to Rs 14.14, its upper circuit limit. On the NSE, it gained 4.09 per cent to Rs 14.
In the last one year, share price of Yes Bank has fallen by 84.18 per cent and 72.67 per cent since the beginning of this year.
Prior to this, LIC had 0.75 per cent stake in Yes Bank though 19 crore shares held. In all, it said, LIC holding in the bank increased to 4.98 per cent through 125 crore shares held.
The period of acquisition is between September 21, 2017, and July 31, 2020, it said.
Earlier this week, Moody’s Investors Service upgraded Yes Bank’s long-term foreign currency issuer rating by a notch to ”B3” from ”Caa1” after a Rs 15,000-crore capital raising. Despite the upgrade, Yes Bank still remains under non-investment grade.
Obligations rated ‘B’ are considered speculative and are subject to high credit risk, while those rated ‘Caa’ are judged to be speculative of poor standing and are subject to very high credit risk.