YES Bank saw a 9% jump in share prices after a 0.5 percent stake was bought by veteran investor Rakesh Jhunjhunwala for Rs 86.89 crore. Rakesh Jhunjhunwala who is also the 48th Richest person in India has purchased about 1.3 crore shares of the bank in the stock market. The average value of this transaction was Rs 67.1 per share. Jhunjhunwala’s investment report accelerated the buying in Yes Bank stock.
Jhunjhunwala bought 1,29,50,000 shares of the bank as per the bulk deal data available on BSE. These shares are equal to the bank’s 0.5 percent stake. In this way, the total deal was worth about 86.89 crores. After this, YES Bank saw a nine percent jump in share prices after a 0.5 percent stake was purchased by veteran investor Rakesh Jhunjhunwala for Rs 86.89 crore.
Why Jhunjhunawala Invested in Yes Bank?
Jhunjhunwala an Indian Billionaire Investor and Trader. He purchased the YES Bank shares to compensate his spot in the Futures and Options business. Another purpose could be that he sees real potential in the performance of the private lender. He is also persuaded about the bank’s increasing economic situation. He has also earlier invested in CRISIL, Lupin, DHFL, and several other firms. It is also reported that he raised his stake in 5 companies like Federal Bank, VIP Industries, etc.
Yes Bank CEO Ravneet Gill said in an interview that eight investors have shown interest in investing in the bank. This includes both foreign and domestic investors. In this, the bank is getting $ 1.2 billion in binding bids from a global investor. Whereas some global investors are getting eight bids, which is around $ 1.5 billion. Yes Bank, which is going through the financial crisis, has received proposals worth more than Rs 21 thousand crores from investors. The bank alone will invest eight thousand crore rupees ($ 120 million) in North America. However, there is no disclosure about this investment.