Shares of YES Bank plunged 12.8 per cent at open on Monday as the three-year lock-in on the bank’s shares came to an end.
At open, shares of the private sector lender touched an intraday low of ₹14.40, but later pared some losses to touch a high of ₹16.30. However, overall market losses weighed on shares of the bank and it ended 4.9 per cent lower at ₹15.70 on the NSE.
Since the beginning of 2023, shares of YES Bank have fallen over 24 per cent as it has seen correction in anticipation of the end of the lock-in period. Further downside on the stock, however, is likely to be limited as it has already seen some amount of correction, analysts said.
The investor lock-in was part of the YES Bank Reconstruction Scheme, 2020, wherein a consortium of 10 institutions led by the SBI had infused ₹10,000 crore to recover the bank. Under the rescue plan, the government had mandated a three-year lock-in on 75 per cent of the shares held by all existing shareholders and new investors. As of December 2019, retail ownership, defined as individuals who own up to ₹2 lakh share capital, stood at 44 per cent. The number of retail investors was 16 lakh, who collectively held 100 crore shares of the bank.
The restriction on sale of shares also impacted the EPFO and other provident and pension funds’ investments in exchange-traded funds (ETFs) that held stake in the bank.
As of December 2022, SBI held the highest stake at 26.1 per cent, followed by Life Insurance Corporation of India at 4.3 per cent. Housing Development Finance Corporation (HDFC) holds 3.5 per cent stake, ICICI Bank holds 2.6 per cent, Axis Bank 1.6 per cent, Kotak Mahindra Bank 1.3 per cent and IDFC First Bank another 1.0 per cent. The equity has grown by over 60 per cent in value since acquired in March 2020.