Yes Bank Ltd. raised Rs 14,267 crore through its follow-on public offer and managed to sail through after getting subscribed 95 per cent on the final day of bidding on Friday.
The bank originally received 93 per cent subscriptions but after adding the anchor investors’ portion the total numbers rose to 95 per cent. An issue is considered successful if it receives a minimum subscription of 90 per cent of its total size.
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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.
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.
Reports suggest that 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.
State Bank of India last week had announced that it will invest Rs 1,760 crore in the FPO.
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.
