Dutch bank, dubbed Rabo bank sold 11% stake out of its 15.9%in private sector lender Yes bank to a group of domestic and foreign institutional investor for around Rs.1, 000crore to set up its own banking operations in India.
Rabo, at present got a non-banking finance company in India called Rabo India Finance.
Sipko Schat, member of the executive board of Rabobank said that the bank as per the la w is bound to reduce its shareholding in Yes Bank. Rabo is waiting for the approval of a full banking license in India.
He said that they are confident on the future prospect of the Yes Bank and for that they were retaining 4.9% of stake in the bank.
Schat will step down from the board of Yes Bank as a result of this reduction in shareholding.
According to the market sources buyers like LIC and China Investment and Capital had bought shares of Yes Bank a discounted rate of Rs.267 per share which on Monday closed at the rate of 281.65 per share. Due to this development Yes Bank’s share rates fall down and closed at Rs.271.90 down by 3.4% on Tuesday.
According to the analysts the long-term potential of the shares remain unchanged. Actually the price at which the share got closed on Monday was not expected by the buyers, it was a discounted price and for that the reduction happened but that will be short –lived.
The reaction of MD and CEO of Yes Bank Mr.Rana Kapoor to the development came out in his statement. He said that it would be positive for them as their shares would have greater volume and momentum for the development. More widespread shareholding would be beneficial for Yes Bank’s existing and future share holders.
Source : Stock Watch