Can anybody here make me understand what’s actually happening with Yes Bank? Every day the share keeps on tumbling down. For investors, it has become a falling knife. Is the situation really so bad or it’s just too much pessimism or Shorters hammering the stock down till no end. Anyways, as Keynes said, “ Markets can stay irrational longer than you can stay solvent.”
Many thought that the major part of problem would be solved after a new CEO is appointed after Rana Kapoor’s exit and his faceoff with Madhu Kapur will end. There is speculation that Yes Bank has stressed assets allocation linkage to companies like DHFL, ADAG and IndiaBull Housing. But in an interview, Ravneet Gill said they are no more negative surprises, and they have no links to ADAG, IBULHSG, DHFL.
For fast few days Rana Kapoor has been selling is his holding, leading to huge selloffs in the equity market due to promoters lowering his holding. Kapoor says he is doing so as to deleverage and pay off debts by Yes Capital.
@nithin, in your blog in late August, you said that over 2 Lakh Zerodha retail clients hold Yes Bank with 59% unrealized loss. Has that figure gone up for month ending Sept 2019?
Yes Bank market cap has fallen drastically. Now, it’s just 8000 crore, the lowest among Nifty 50 companies. I think it might be excluded from Nifty 50 in January when Index half-yearly reconstitution takes place.