Did Yes Bank just make you rich in 1 day? Intrepid investors gain massively! So, what’s cooking at Rana Kapoor led bank?
The bank has touched an intraday high of Rs 171.25 per piece, which meant a nearly 7% rise in today’s trading session.
After generating extreme panic in previous trading sessions, the share price of Yes Bank has surprisingly, turned out to be the best performer on Sensex today! At around 1302 hours, the Yes Bank was trading at Rs 168.55 per piece on BSE, above Rs 8.10 or 5.05%. However, the bank has touched an intraday high of Rs 171.25 per piece, which meant a nearly 7% rise in today’s trading session. This performance is quite strange, especially after the bank received negative outlook from three major rating agencies Moody’s Investor Services, ICRA and CARE Ratings. However, the intrepid investors who refused to sell, and those who saw an opportunity in the plunging stock to buy it, have definitely become massively richer today!
Reason behind such a rise was revealed when Rajat Monga, Senior Group President at Yes Bank told CNBC-TV18 that MD & CEO, Rana Kapoor doesn't have any ownership in Morgan Credits or Yes Capital.
Reportedly, a controversy was generated when it was reported that Rana Kapoor’s investment firm had borrowed some money from mutual funds and invested it as equity in a finance company.
According to a MoneyControl report, Morgan Credits Pvt Ltd (MCPL) and Yes Capital (I) Pvt Ltd (YCPL) are holding companies owned 100 percent by Radha K Khanna, Raakhe K Tandon and Roshini Kapoor (Rana Kapoor's daughters).
Apart from this, a news also broke saying Kapoor might fill in the shoes of non-executive chairman, which was vacant after Ashok Chawla’s resignation from the post. However, Kapoor who just has only two month’s leadership left in Yes Bank, the possibility of him taking over as Chawla’s seat is bleak.
On Thursday, Yes Bank shares dropped over 9% on Sensex, before ending at Rs 160.45 per piece. The bank also clocked a new all-time low of Rs 147 per piece, which then resulted in nearly 64% decline in share price in 1 year’s time from its all time high of Rs 404 per piece.
However, if we compare yesterday’s all time low of Rs 147, then today Yes Bank has surged by over nearly 17% taking into consideration the current intraday high.
This is quite a good news for investors who made an opportunity out of Yes Bank struggles when it plunged to all time lows. Investors who invested in this bank at its low, have made a good short term gain, hence are richer as well.