Yes Bank - Three-Year Lock-In Period Coming To An End: ICICI Direct

ICICI Direct Report

As a part of Reserve Bank of India’s Reconstruction Scheme 2020, State Bank of India initially infused capital of Rs 6050 crore for a ~48% stake in Yes Bank Ltd.

Under this scheme, the minimum price was Rs 10 per share and it also contained a lockin period of three years till March 2023 for all investors where-in no one can sell old shares in secondary market for three years.

Additionally, under this scheme State Bank of India must hold at least 26% until March 2023.

State Bank of India’s original ~48% stake has reduced to ~26% as of December 2022 due to fund raising dilutions over time

We expect Yes Bank share prices to remain volatile as the lock-in (prohibiting shares sale) ends tentatively in a week’s time by March 13, 2023 as cash transfer happened on March 14, 2020.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.