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Yes Bank Share Price Declines Further As Institutions Change Holding Positions

YES Bank shares declined on Monday by 1.2% to trade at Rs 24.65 at the NSE.  The decline follows a series of purchases and sales by institutional investors in the past four days. US investment firm Carlyle Group, sold 59.4 crore shares worth a total of Rs 1,441.63 crore on Friday.  The amount represented about 1.98 percent stake. Furthermore, this is the second sale by Carlyle this year, as it previously sold a1.3 percent stake in the bank in February. Carlyle currently holds about 14 percent of YES Bank. 

In addition, an exchange filing shows that Yes Bank received Rs 61 crore from the sale of its nonperforming assets to JC Flowers ARC in December 2022. Additionally, another document states that the Yes Bank Board of Directors authorised Verventa Holding to receive approximately 127.99 crore equity shares of the bank. Each transaction had a face value of 2 rupees for each share. The preferential allotment of warrants allowed Verventa to pay the remaining 75% of the issue price. That resulted in YES Bank receiving around Rs 1,422.58 crore from the conversion of equity shares.

It has also emerged that First Abu Dhabi Bank (FAB), the biggest bank in the UAE, and Mizuho Bank, one of the leading Japanese financial institutions, have expressed interest in purchasing SBI’s ownership in Yes Bank. SBI holds 25 percent stake in YES Bank, and Citibank has been appointed as transaction advisor in the deal. SBI was one of the eight banks that came that acquired stake in YES Bank in 2020 when the latter was under receivership.  The recent share movements by institutional investors could have far-reaching ripple effects on YES Bank share price.

Technical analysis

The momentum on Yes Bank share price signals that the sellers are in control. The sellers will be in control if resistance will persist at 25.55. With the sellers in control, they will likely break the support at 24.45, which could go further down to test 23.40 in extension. However, if the buyers push above 25.55, they will encounter the next resistance at 26.80. Furthermore, a move past that mark could break the resistance and potentially move Yes Bank share price to test 27.75.