Image Source: Telegraph India
Bandhan Bank Ltd. has announced a significant reduction in its shareholding in Yes Bank, bringing its stake down to just 0.21% after agreeing to sell 15,39,34,975 equity shares at ₹21.50 per share. This move comes as part of a broader wave of institutional exits from Yes Bank, coinciding with the landmark acquisition of a 20% stake by Japan’s Sumitomo Mitsui Banking Corporation (SMBC).
Key Highlights:
Substantial Stake Sale: Bandhan Bank is divesting nearly its entire holding in Yes Bank, reducing its stake to a minimal 0.21%. The sale of over 15.39 crore shares at ₹21.50 each is part of a coordinated exit by several institutional investors, including SBI and other major banks, as SMBC steps in as a strategic investor.
Strategic Realignment: The transaction aligns with Bandhan Bank’s capital allocation strategy, allowing it to unlock value from its original investment made during Yes Bank’s 2020 reconstruction. The sale price represents a premium to Yes Bank’s recent trading levels, reflecting strong demand from SMBC and optimism about Yes Bank’s future under new management.
Market Impact: The broader deal, involving multiple banks and culminating in SMBC’s acquisition of a 20% stake, is set to become one of the largest M&A transactions in India’s banking sector. Yes Bank shares have rallied over 8% in response to the news, signaling positive market sentiment and expectations of further stability and growth for the lender.
Sector Implications: This exit by Bandhan Bank and peers is part of a strategic reshuffle in Indian banking, as global players like SMBC bring fresh capital, expertise, and governance to Yes Bank, potentially paving the way for further international investment and consolidation in the sector.
With this decisive move, Bandhan Bank not only strengthens its balance sheet but also positions itself for new growth opportunities, while Yes Bank embarks on a new chapter under SMBC’s stewardship.
Sources: Economic Times, Fortune India, Capital Market, Moneyworks4me
Advertisement
Advertisement
