Yes Bank shares climb over 2%; market valuation up Rs 1,258 cr

New Delhi:  Shares of Yes Bank on Monday ended over 2 per cent higher after State Bank of India and seven other lenders announced selling 20 per cent of their combined stakes in the firm to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for a consideration of Rs 13,483 crore.

Trimming most of its sharp early gains, the stock climbed 2 per cent to settle at Rs 20.40 apiece on the BSE. During the day, it rallied 8.7 per cent to Rs 21.74.

On the NSE, shares of the firm ended at Rs 20.49 each, up 2.34 per cent. Intra-day, the stock surged 8.39 per cent to Rs 21.70.

The company's market valuation went up by Rs 1,258.37 crore to Rs 63,966.60 crore.

On Friday, State Bank of India (SBI) and seven other lenders announced selling 20 per cent of their combined stakes in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation for a consideration of Rs 13,483 crore, making it the largest cross-border investment in the Indian banking sector.

Following the completion of the transaction, SMBC will become the single largest shareholder of Mumbai-based Yes Bank.

Of the 20 per cent stake, SBI would dilute 13.19 per cent stake in Yes Bank in favour of SMBC for a consideration of Rs 8,889 crore, while 6.81 per cent shareholding will be offloaded by seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank -- for about Rs 4,594 crore.

Shares of SBI, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank also ended sharply higher.

SBI and the seven investor lenders had invested in the bank as part of the YES Bank Reconstruction Scheme in March 2020.

The executive committee of the central board (ECCB) of the bank in the meeting has accorded approval to divest 413.44 crore shares or equivalent to 13.19 per cent stake in Yes Bank for a consideration of Rs 8,888.97 crore, SBI had said in a regulatory filing.