On Tuesday, Yes Bank was among the top gainers on Sensex in a session that continued its rally post the Mahurat Trading. Shares of the private lender jumped by as much as 6.15 percent to Rs 58.60 apiece on NSE.
The stock has seen a drastic improvement in value in October. At the start of the month, that is on 1 October, the stock was at Rs 32 apiece. Between then and now, the stock has gained 82.34 percent in value.
Experts associate the gains to various news reports at the start of this month that said the bank was in talks with investors to raise funds by selling a minor stake.
Retail investors' confidence in the new management's ability to raise funds has also caused an increase in their share of investment. According to an Economic Times report, Yes Bank added 7.56 lakh new retail buyers over the past year with more than one-third of this addition seen in the September quarter alone.
The strength of the retail investors' category has been increased to 13.80 lakh, the report said, which makes the private bank the fifth-biggest Indian stock in terms of retail ownership. RIL, SBI and Reliance Communications are companies with more retail shareholders than Yes Bank.
Further, mutual fund houses had increased their holding in Yes Bank to 9.26 percent in the September quarter from 6.59 percent even as overseas funds reduced their holding in the lender.
However, some analysts say that the stock's valuation could remain under pressure as the lender could take a couple of more years to return to normalcy in earning trajectory considering its high exposure to mid-corporate space, which is currently under stress.