Why people think Fall of Yes Bank is the Best Investment Opportunity of 2020

Find out! Why Yes Bank can be the biggest Multi Bagger of 2020 

Yes bank has been in the headlines since on March 5 when RBI placed a moratorium on the bank and superseded the board. RBI had to take such a move as Yes bank was unable to infuse capital in the bank from investors and this could have resulted in a possible shutdown. Withdrawal limit of 50,000 max was put on savings and current accounts which got people rushing towards the bank.

Despite all the bad which was happening to Yes bank, the government told that SBI will be buying a stake in Yes bank and will play a major role in a revival of the bank. This news made a lot of rounds and it was in no time the share jumped to a close of 16Rs with a low of Rs 5 on the same day.

So What is Yes Bank Reconstruction Scheme

According to the Yes Bank reconstruction scheme, SBI along with some other investors would be infusing some amount in the bank where SBI will play the role of major investor and has to hold at least 26% shares for a period of 3 years. Other investors will need to hold a minimum of 75% percent shares for a period of 3 years which is also the lockdown period for them.

So who all are the investors for Yes bank reconstruction scheme

SBI ( Primary Investor ) - 725 Cr Share - Capital 7250 Cr

 Axis Bank - 60 Cr Share - Capital - 600 Cr

ICICI Bank - 100 Cr Share - Capital - 1000 Cr

HDFC - 100 Cr Share - Capital - 1000 Cr

Kotak Bank - 50 Cr Share - 500 Cr

Bandhan Bank - 30 Cr Share - 300 Cr 

A total of 10650 Cr will be infused in Yes bank at a price of 10Rs per share for Investors.

The current price of Yes Bank share stands at Rs 25.55 at the time of writing of this article so the question stands is Yes bank a multi-bagger at this price. 

Yes bank has a lot of bad debts but with SBI and other banks coming in the race and acquiring shares in Yes bank good results can be expected from Yes bank in the future. Yes banks price has increased 300% from its low of Rs 5 and looks like a good contender for the race of best multi-bagger of 2020.

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