Yes Bank shares have been flying since Friday. It hit an intraday high of Rs.18.85 on the NSE within minutes of the opening bell of the stock market on Monday morning.
After climbing to an intraday high of Rs.18.85 per share, Yes Bank share price has rallied nearly 15 percent in two consecutive sessions. On Thursday, Yes Bank shares closed at Rs.16.80.
Why have Yes Bank shares been skyrocketing in the past two sessions? According to Avinash Gorakshakar, the Head of Research at ProfitMart Securities, “After some media reports about Subhash Chandra and JC Flowers on Friday, Yes Bank shares have been on an upward trend over the past two sessions. The two-year struggle to repay debt in the ARC (asset restructuring arm) of Yes Bank is coming to an end. The reports suggest that Yes Bank’s ARC has made a 75 percent reduction, and now Subhash Chandra chairman of the Essel Group will have to pay ₹1500 crore instead of ₹6500 crore, but this payment of ₹1500 crore will be made in one go.”
Subhash Chandra was elected to the Upper House of the Indian parliament for the Haryana state in the 2016 Rajya Sabha election, as an independent candidate supported by legislators from the Bharatiya Janata Party.
The stock can fall as fast as it rises
Advising new investors to wait for the official statement, Avinash Gorakshkar of Profitmart Securities said, “New investors are advised to wait for the official confirmation as the current hike is purely speculative.
If there is no official statement from any of the parties involved in the debt restructuring deal, the stock may fall sharply”.
