Why is Yes Bank share price skyrocketing? EXPLAINED

Mint

2 days ago

Yes Bank share price rallied sharply on Monday, June 2, gaining over 8% during intraday trade and extending their upward momentum for a third consecutive session. Yes Bank shares climbed as much as 8.61% to ₹ 23.32 apiece on the BSE.
The recent uptrend in Yes Bank share price comes ahead of a crucial board meeting scheduled for Tuesday, June 3, 2025. The private lender's board of directors will consider proposals to raise capital through the issuance of equity shares or debt securities, potentially via private placement or preferential allotment, subject to requisite approvals
'...this is to inform that the meeting of the Board of Directors of YES Bank Limited is scheduled to be held on Tuesday, June 03, 2025, inter alia, to consider raising of funds by way of issuance of equity shares, debt securities and/or any other eligible securities (convertible/non-convertible) through permissible modes, including but not limited to a private placement, preferential issue or any other method or combination of methods, subject to such approvals as may be required,' Yes Bank announced in a regulatory filing on May 28.
Yes Bank also notified that its trading window for designated persons and insiders will remain closed from May 29 until two days after the outcome of the board meeting is disclosed to the stock exchanges.
Investor sentiment has also been buoyed by the recent announcement that Japan's Sumitomo Mitsui Banking Corporation (SMBC) plans to acquire a 20% stake in Yes Bank from the State Bank of India-led consortium. The Yes Bank-SMBC deal, valued at ₹ 13,483 crore, marks the largest cross-border investment in India's banking sector. Upon completion, SMBC will become the single largest shareholder of the private lender.
The strategic investment comes five years after Yes Bank was rescued by a consortium of domestic banks led by SBI.
Yes Bank share price has witnessed a strong rally, gaining over 30% in the past month and rising 18% on a year-to-date (YTD) basis. The stock has advanced 15% over the last six months and remained flat over the past year. However, on a two-year basis, Yes Bank stock price has appreciated by 41%.
Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio, noted that Yes Bank share price has broken out of a Pennant Pattern on the charts, indicating a continuation of the ongoing bullish trend.
'Yes Bank share price is trading comfortably above its major EMAs, reinforcing the bullish bias. An increase in volume supports the view that buyers are actively participating at current levels. Additionally, the RSI is trending in the higher range, indicating sustained strength in momentum. Overall, the technical structure remains positive,' Kamble said.
He recommends buying Yes Bank shares on dips near ₹ 22, with a stop-loss at ₹ 21 on a closing basis, and anticipates a potential upside target of ₹ 25 in the near term.
At 2:55 PM, Yes Bank shares were trading 8.15% higher at ₹ 23.22 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.