Yes Bank’s fund Raising: Over 90% FPO sold out

Yes Bank’s follow-on public offer to raise Rs 15,000 crore has managed to sail through after getting subscribed 93 per cent on the final day of bidding on Friday. The Follow-On Public Offer (FPO) subscription would be 95 per cent after including the anchor investor’s portion.

The bank would raise the targeted RS 15,000 crore with help from SBI Capital Markets, which had underwritten the issue.

The issue received bids for 8,47,86,84,000?shares against the offer size of 9,09,97,66,899 shares, translating into a subscription of 93 per cent, as per data available with the National Stock Exchange till 7 pm.

An issue is considered successful if it receives a minimum subscription of 90 per cent of its total size. As per an underwriting agreement, the non-subscribed portion of the FPO would be allotted to SBI Capital Markets, which had agreed to underwrite Rs 3,000 crore worth of shares at a price equal to the lowest end of the price band.

Yes Bank has fixed a price band of Rs 12-13 per share for the FPO, which opened for subscription on July 15.

The bank’s capital had fallen below the regulatory mandate and plans to use the proceeds for growth. The money will suffice the lender for two years.

Yes Bank
Yes Bank

The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 1.90 times and Non-Institutional Investor category received 0.63 times subscription. Retail portion was subscribed 0.47 times, according to investment banking sources.

They said a total of 27 institutions, including SBI, LIC, Edelweiss, Bajaj Allianz, HDFC Life, Punjab National Bank, HDFC MF, Union Bank, Bajaj Holdings, Avendus Wealth Management and IFFCO Tokio General Insurance, had put in their bids.

“We are pleased with the completion of our further public offering and would like to thank all the investors, partners and employees who have supported the issue. It is an important step in our journey of transformation and is a testament to the trust placed in the institution,” Yes Bank MD and CEO Prashant Kumar said in a statement.

Earlier, the company had raised nearly Rs 4,100 crore from anchor investors, including from US-based alternative asset manager Tilden Park Capital Management’s Bay Tree India Holdings.

The bank is raising funds through the FPO to ensure adequate capital to support its growth and expansion, including enhancing its solvency, capital adequacy ratio, and evolving regulatory requirement.

Kotak Mahindra Capital Company, SBI Capital Markets, Axis Capital, Citigroup Global Markets India Pvt Ltd, DSP Merrill Lynch, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities and YES Securities (India) Ltd are the merchant bankers for the issue.