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Stock Analysis, IPO, Mutual Funds, Bonds & More

Multibagger bet? YES Bank sees major small investor interest in Q2

On a year-to-date basis, the stock is down nearly 80 per cent to trade at Rs 40.

, ETMarkets.com|
Updated: Oct 16, 2019, 05.17 PM IST
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Yes Bank Reuters
Small investors put in major bets on beaten-down YES Bank, as the private sector lender continued its poor show through the quarter ended September 30.

Like high net worth individuals (HNIs), who generally show appetite for risky stocks, small investors jumped on to the bandwagon and bought the beaten-down stock in large numbers in Q2.

On a year-to-date basis, the stock is down nearly 80 per cent to trade at Rs 40 on October 15 from Rs 184 on January 1, 2019.

Retail investors added 26.40 crore YES Bank shares during the quarter, while high net worth investors bought 2.53 crore. Together, they bought nearly 29 crore shares of the bank during the quarter gone by.

With this change in shareholding pattern, individuals with share capital of up to Rs 2 lakh held 69.80 crore YES Bank shares as of September 30 against 43.40 crore at the end of June. HNIs (individual with share capital in excess of Rs 2 lakh) held 6.56 crore shares against 4.03 crore at the end of the previous quarter.

Among other key stakeholders, foreign institutional investors (FII) reduced their stake to 26.51 per cent in Q2FY20 from 33.69 per cent in Q1FY20. Mutual fund houses increased their holding to 9.26 per cent from 6.59 per cent QoQ.

The private lender on Tuesday said it had recovered Rs 645 crore by selling its 6.77 per cent stake in Fortis Healthcare. The bank did not name the buyer, but said the shares were sold through bulk deals over a period.

“YES Bank has recovered Rs 645 crore of its Religare exposure through sale of a 6.77 per cent block of Fortis Healthcare shares,” the bank said in a statement.

Market analysts are waiting for the bank’s next round of fund raise and also quarterly numbers before commenting on the share price.

In an interaction with ETNow, analyst Sameer Narayan said the YES Bank story has to play out. “People are looking forward to the second round of fund raising after the QIP, which was basically done to ensure that the bank moves forward.

“The second round of fund raising has to be from a private equity/strategic investor, who wants to be there for the long haul and that is critical. The stock might have stopped falling, but I would want to know who wants to come on board for the long haul and be a part of the management and be accountable to investors. I would want to see that data point before anything else,” said Narayan.

Deven Choksey, Group Managing Director, KR Choksey Investment Managers, said it is difficult to predict the stock movement. “Investors can take a calculated call only when they get clarity. That clarity is missing right now,” he said.
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