Yes Bank explained the ~23% plunge in its share price on Tuesday via a notification to the exchanges.
The company wrote, “Yes Bank’s share price observed a material drop on October 01, 2019. This fall was primarily on account of the forced sale of 10 crores equity shares (3.92% of the Bank’s equity share capital) triggered by an invocation of pledge on the equity shares of a large stakeholder…It may be noted that with this sale, the entire pledge stands extinguished and all sale under the same duly completed.”
Regarding the stability of the bank, it said, “The Bank would like to confirm that its financial and operating metrics remain intrinsically sound and stable with liquidity position well in excess of regulatory requirements.”
Yes Bank Ltd ended at Rs32 down by Rs9.45 or 22.8% from its previous closing of Rs41.45 on the BSE.
The scrip opened at Rs42 and touched a high and low of Rs44.30 and Rs29.05 respectively. A total of 86,50,36,553 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs8,161.06cr.