Shares of Yes Bank on Friday rose five percent after LIC acquired close to 5 per cent shareholding in the bank by purchasing shares from the open market.
The company's stock jumped 4.97 percent to Rs 14.14 -- its upper circuit limit -- on the BSE.
On the NSE, it gained 4.83 percent to Rs 14.10.
With the fresh acquisition, the holding of LIC has increased from 0.75 percent to 4.98 percent, Yes Bank said in a regulatory filing.
LIC purchased 105.98 crore shares, reflecting 4.23 percent stake, of the bank from the open market, the filing said.
Prior to this, LIC had 0.75 percent stake in Yes Bank through 19 crore shares held. In all, it said, LIC’s holding in the bank increased to 4.98 percent through 125 crore shares held. The period of acquisition is between September 21, 2017, and July 31, 2020, it said.
Earlier this week, Moody's Investors Service upgraded Yes Bank's long-term foreign-currency issuer rating by a notch to ''B3'' from ''Caa1'' after a Rs 15,000-crore capital raising. Despite the upgrade, Yes Bank still remains under non-investment grade.
Obligations rated 'B' are considered speculative and are subject to high credit risk, while those rated 'Caa' are judged to be speculative of poor standing and are subject to very high credit risk.
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