YES Bank

#61
I think it will survive this onslaught. However they will need to rebrand or else depositors won't come in.

Eventually if it doesn't work, it will be merged with SBI.
 

Alchemist

Administrator
Staff member
#63
What is the most likely outcome for Yes Bank now? Is there any chance that it will survive and continue to trade, or will it eventually close down?
As of now, it seems the equity will not be written off entirely and the stock will continue to have some value.

1. If SBI is issued new shares and these shares are equal to the older shares then the equity shareholders are safe.

It's unlikely that SBI will let its initial investment turn sour. In worst case, where additional equity capital can't be raised, Yes Bank will be merged with SBI.

2. If the shares issued to SBI are of different class and distinguishable from the older shares, then there is a risk that in case the financials of the bank deteriorate further, the older shares will be written off.
 
#64
These new investors (all private and public banks) are in win-win situations after the price hike. They are going to invest @ 10 Rs per share and can sell 25% holding any time. So, if ICICI bank is investing 1000 crores, 250 cr worth share they can sell now (or once they get the allotment). But now the price is around Rs. 60 per share which is almost 6 times of their buying price. So, it would be 250*6=1500 crore. So, they are investing with huge margin. There is no risk to them looks like they are getting there money back in few days only. Not fair for small shareholders. Should we invest here?
 
#65
What exactly is happening with Yes Bank? The rally seems unstoppable. Initially I thought maybe it is the retail investors wanting to get in at lower levels and it will subside, but this does not seem to be stopping. Any thoughts?

Also, I do not understand this point of SBI and other lenders investing in Yes Bank at Rs.10 per share. How can someone be given shares at a particular price if the market price is different. Even if they are new shares, they should be given at market price since it is an actively traded scrip, right? Am I missing something?
 

Alchemist

Administrator
Staff member
#66
Also, I do not understand this point of SBI and other lenders investing in Yes Bank at Rs.10 per share. How can someone be given shares at a particular price if the market price is different. Even if they are new shares, they should be given at market price since it is an actively traded scrip, right? Am I missing something?
Even though the financial statements are still not showing it, the bank's net worth is now negative.

The bank will report huge losses in coming quarters too.

In short, the value of the bank's equity is 0.

If RBI hadn't intervened, the bank would have collapsed and taken down the entire system with it.

The older shareholders should thank their luck that their shares have at least some value now. If RBI had taken the GTB (Global Trust Bank) route for Yes Bank, the older equity shares would have been extinguished by now.

The up move in Yes Bank's stock was because of technical reasons . Many shares were not delivered for settlement because of RBI's restrictions and were auctioned in large quantities for 2-3 days.

I expect the stock to slowly drift down for now on as the temporary shortage has passed.
 
#67
Yes bank is now coming with an FPO with a price band of Rs 12 to 13.

Let's see how many investors will invest in this.
 
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#69
I have bought a large quantity of this in the FPO. Now it looks like the price will hold till 27th but there will surely be a decline to get it closer to 12.

All applicants will get full shares what they've applied for.
 
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