New Delhi: Shares of Yes Bank continued to slip for the third straight session as investors remain cautious amid concerns over the bank’s exposure to CG Power and Industrial Solutions which has been hit by alleged financial irregularities and unauthorised transactions.
Shares of Yes Bank closed at ₹65.40, down 8.21% on BSE. On NSE, the stock is down 8.64% at ₹65.05.
Yes Bank holds 12.8% stake in CG Power and Industrial Solutions as of June 2019.
“Fall in the Yes Bank recently is attributed to their exposure to CG Power. It had acquired 12.8% stake in the company post invocation of pledged shares of promoters. Net realisable value from their exposure to the company would be further less given stock price has also corrected steeply,” said Anusha Raheja, BFSI Research Analyst at LKP Securities.
The stock is trading at lowest level since March, 2014.
“Yes Bank stock has been falling down and forming lower highs – lower lows on weekly scale. It is trading at 5 years lows and every small bounce is being sold with sustained selling pressure in the counter. It has recently broken weekly support of 79 zones and that is likely to act as a hurdle to drag it towards 60 levels,” said Chandan Taparia technical and derivative analyst at Motilal Oswal Financial Services.
The board of Gautam Thapar-promoted CG Power and Industrial Solutions Ltd on Tuesday said the company will restate accounts after discovering “significant accounting irregularities” and governance lapses. The board said it has found “suspect” transactions that have led to significant understatement of the company’s liabilities and advances to related and unrelated parties.
Shares of CG Power also touched 52-week low of ₹11.80 on BSE, losing 20% on Wednesday.
Last week, Yes Bank had raised ₹1,930.46 crore through qualified institutional placement (QIP) to fund its business expansion. Private sector bank had said that five investors bought more than 65.5% of the equity shares offered in its recent QIP of ₹1,930.46 crore.