Will Jhunjhunwala’s healing touch change the game for YES Bank and ensure V-shaped recovery for the stock? – Economic Times
Mumbai: Veteran investor Rakesh Jhunkhunwala guess on shares of YES Financial institution on Monday as he picked up 0.51 per cent stake within the lender. Nonetheless, market specialists are unsure that this can change the fortunes for the inventory, which has witnessed heavy beating this 12 months.
The Huge Bull purchased 1.30 crore shares at Rs 67.10 per share, placing the deal worth at round Rs 86.89 crore.
Shares of the lender closed at Rs 66.10, down 0.50 per cent or 0.75 per cent towards 0.34 per cent rise in BSE Sensex.
YES Financial institution’s shares have greater than doubled from their decade low of Rs. 29.05 seen in early October, however are down 84 per cent from their report highs of Rs 404 seen in August final 12 months.
“He’s a legendary investor. We maintain him in excessive esteem,” mentioned a senior official at a brokerage, who didn’t want to be recognized.
“There have been many lemons in latest occasions too. Except Titan and some shares, fairly just a few of his holdings haven’t carried out nicely of late,” the official added.
The professional identified that Jhunjhunwala divides his holdings in two buckets – investments and buying and selling. “We don’t know if this can be a buying and selling guess or an funding guess.”
Whereas the inventory might even see an uptick on Tuesday, the brokers are not sure of a sustained rally.
“We might even see an upside tomorrow, however it stays to be seen if features maintain,” an official at one other brokerage mentioned.
Shares of YES Financial institution had spiked final week after the lender knowledgeable bourses that it has a binding funding provide of round $1.2 billion.
Ravneet Gill, CEO and MD, on Tuesday instructed ET NOW that the financial institution has acquired whole bids price $three billion.
“The query for us is admittedly to have the ability to shortly circle again and determine what may take advantage of sense for the financial institution from a monetary standpoint, from a strategic standpoint, from a long run level by way of the re-branding the complete financial institution and repositioning it. That’s the determination that the capital elevating committee of the board might want to shortly take after which take to the board for closing approval,” he mentioned.