InvestorQ : Is it true that some of the large bank shareholders have sold out of Yes Bank immediately after infusing capital?
Aashna Tripathi made post

Is it true that some of the large bank shareholders have sold out of Yes Bank immediately after infusing capital?

Answer
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Tisha Malhotra answered.
6 months ago


At least that is what the shift in shareholding pattern of Yes Bank for the quarter ended March actually indicates. It has emerged that 3 banks that helped bailout Yes Bank in early March had already sold a portion of their holding, in less than two weeks of their investment. Ironically, most of the selling pressure from these banks and other institutional investors was absorbed by individual investors. The condition in the bailout was that 75% of shares held by existing shareholders would be locked-in. So, an existing shareholder could sell 25% of its holding. Domestic funds sold 95% of the shares that were free to trade. They were followed by Federal Bank and IDFC First Bank, which sold 78% and 64%, respectively, of the shares they were allowed to sell. They most likely recovered their entire investment in this sale and would probably make a neat profit on the balance shares held on. The scapegoats were the individual shareholders adding to their holdings by as much as 50%. In absolute terms, Kotak Bank was the biggest seller in Yes Bank. Even as Yes Bank continues to remain in a rut, banks that bailed out Yes Bank are laughing all the way to the bank.