Yes Bank Shares Surge 45% After Lock-In Of 3 Years Prescribed For Its Shareholders

In early trade on March 16, the shares of Yes Bank rallied as much as 45% to Rs. 37 per share after there was a notifcation from the Ministry of Finance on March 13, 2020 as per which there has been prescribed a lock-in period for investors in Yes Bank who hold 100 or more shares in the bank to the extent of 75% of their holdings as well as for those who are allotted shares as part of the reconstruction scheme.

This simply means that before a lock-in of 3 years that is imposed on Yes Bank shareholders comes to an end, they can just sell 25% of the total holding in the bank.

Yes Bank Shares Surge 45% After Lock-In Of 3 Years Prescribed For Its Shareholders

Also, there has been announced a reconstruction scheme for the private sector lender that shall be led by SBI and joined by others. And SBI will invest in 725 crore shares of Yes Bank at Rs. 10 per share.

Late on Saturday, the bank announced the biggest ever loss by a private sector lender at Rs. 18,654 crore for the quarter ended December.

Edelweiss has placed the stock of Yes Bank 'under review' call and also said while the reconstruction scheme is novel it will have collateral damage.

Also, all of the Nifty indices are to remove beleaguered lender Yes Bank from Nifty 50, Nifty Bank, all Nifty equity indices from March19 instead of the earlier announced March 27.

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