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YES Bank share price rises after MD Ravneet Gill says lender in talks to sell stake to a global tech firm

YES Bank share price rose up to 13.87% in afternoon trade to Rs 72.55 compared to previous close of Rs 63.10 on BSE. YES Bank was the top gainer on both Sensex and Nifty.

YES Bank share rises after MD Ravneet Gill says lender in talks to sell stake to a global tech firm

YES Bank share price has been gaining for the last two days and risen 10.35% returns during the period. The large cap stock has lost 78.75% in last one year and fallen 62.97% since the beginning of this year.

YES Bank share price gained in early trade today after MD & CEO Ravneet Gill said the bank was in advanced level of talks to sell a minority stake to a global technology company to raise more growth capital. Gill told Reuters the bank was in advanced level of talks to sell a minority stake to a global technology company. "We are in fairly advanced level of talks right now and it is close to being a done deal," Gill said in an interview.

Gill also said that apart from the tech investor, smaller investors could also invest around $200 million to $250 million in YES Bank.

However, the private lender denied the Reuters report in a communication to BSE and NSE.

YES Bank share price rose up to 13.87% in afternoon trade to Rs 72.55 compared to previous close of Rs 63.10 on BSE. YES Bank was the top gainer on both Sensex and Nifty. On Nifty, the stock rose 13.71% to Rs 71.75.

YES Bank share price has been gaining for the last two days and risen 10.35% returns during the period. The large cap stock has lost 78.75% in last one year and fallen 62.97% since the beginning of this year.

The bank issued a clarification in response to the Reuters report and said, "The Bank in the usual and ordinary course of its business continues to explore various means of raising capital through issuance of securities to diverse set of investors, in order to meet its business and regulatory requirements, subject to compliance with prescribed procedures and

receipt of statutory and regulatory approvals. "

Additionally, some reports said YES Bank co-founder Rana Kapoor was in talks with Paytm founder Vijay Shekhar Sharma to sell his stake at the bank. In August, Kapoor had offered to sell his stake in Yes Bank to Sharma. According to reports, he also offered the stakes of his family members for up to Rs 2,000 crore.

According to a report in Times of India, the talks are at an exploratory stage and the two parties still have to discuss the structure of the deal. Moreover, the RBI will also have to give its nod to the deal. The daily mentioned that multiple contours of the deal are discussed including, capital infusion.

Kapoor, his family members and the investment firms they control own a 9.54 per cent stake in Yes Bank. At current valuation, Kapoor and his family's shareholding is worth Rs 1,550 crore.

If this deal follows through then it will be the first time a fintech company or its promoter will buy a sizeable stake in a commercial bank.

Edited by Aseem Thapliyal

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