Yes Bank gets "Jhunjhunwala" effect

Yes Bank is very much in the limelight today morning. Yesterday, it had hit the 10% LC at Rs.59.95  but closed at Rs.66.10. Today, it opened itself 6.5% higher at Rs.70.40 and rose to an intraday high at Rs.71.90, going very close to its 10% UC of Rs.72.70.

This change of fortune from LC to UC is thanks to Rakesh Jhunjhunwala. His is a ‘Midas’ touch; the moment it is known that he has bought a stock, the price spurts up and vice versa.

It was learnt from the BSE data that Jhunjhunwala yesterday purchased around 1.3 crore shares or 0.5% stake in Yes Bank for Rs.87 crore on the BSE through open market transactions. This means he bought the shares at an average price of Rs.67.10/share.

And it was only yesterday that the Bank reported a loss of Rs.600 crore on account of one-time tax adjustment.

Earlier, Yes Bank had announced that it has received a binding offer of $1.2 billion from a global investor and in addition, received eight bids from global investors worth close to $1.5 billion.