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Why Yes Bank shares are up 20% in two days

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Yes Bank shares are in uptrend over past few says despite weakness on Dalal Street. After logging near 11 per cent rise on Friday deals, Yes Bank share price today opened with an upside gap and went on to hit 2-year high of ₹21.15 apiece levels, ascending near 20 per cent in last two trade sessions. 

According to stock market experts, Yes Bank shares are rising after the private lender's disclosure on Friday where it informed Indian bourses about the positive developments in regard to fresh investments by Carlyle Group and Verventa Holdings Limited. They said that Yes Bank share price has given sideways trend breakout on chart pattern and it may go up to ₹28 apiece levels in short to medium term. They advised positional investors to maintain buy-on dips-strategy in the scrip till it is above ₹18 apiece levels.

Speaking on the reason for Yes Bank share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Yes Bank shares witnessed strong upside on Friday after the private lender informed Indian bourses about positive developments in regard to fresh investments by Carlyle Group and Verventa Holdings Limited. The private lender has claimed that the Reserve Bank of India (RBI) has given conditional approval to each investors with respect to the proposed acquisition by each of them of up to 9.99% of paid up share capital of the Yes Bank. This fundamentally strong news is expected to improve asset quality of the bank, which has attracted attraction of market bulls."

Yes Bank share price target

Advising positional investors to maintain 'buy on dips' strategy in regard to Yes Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Yes Bank shares have given sideways trend breakout at ₹18 apiece levels and it may go up to ₹24 and ₹28 levels in short and medium term. Those who have Yes Bank in their stock portfolio are advised to maintain trailing stop loss at ₹17 and keep on accumulating for ₹24 and ₹28 targets."

For those who want to buy Yes Bank stocks, Sumeet Bagadia of Choice Broking said, "Yes Bank shares have already surged a lot. So, one should wait for the profit booking trigger and once it settles down above ₹18 levels, then only one can buy Yes Bank shares for ₹24 and ₹28 targets maintaining strict stop loss at ₹17 levels."

Yes Bank news that fueled stock price

In its latest exchange communication, Yes Bank said, "This is in relation to the proposed investment by CA Basque Investments (CA Basque Investments is part of the group of entities doing business globally as ‘The Carlyle Group’) and Verventa Holdings Limited (affiliate of funds advised/managed by Advent) (each, an “Investor" and collectively, the “Investors") in the equity shares of face value Rs. 2 (Rupees Two only) each and share warrants of Yes Bank Limited (the “Bank" and together with the foregoing, the “Subscription Securities")," adding, "Further to the Reserve Bank of India, issuing a conditional approval to each Investor with respect to the proposed acquisition by each of them of up to 9.99% of paid up share capital of the Bank through subscription to equity shares and share warrants of the Bank vide separate letters dated November 30, 2022, we wish to hereby inform that the Bank is now in receipt of two further letters (separate to each investor) from the RBI in relation to the proposed investment. Pursuant to which, the Bank shall now engage with the Investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective Investment Agreements."

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