Money & Banking

YES Bank FPO sails through with 95% subscription

Our Bureau Mumbai | Updated on July 17, 2020

YES Bank hopes to use the funds raised to meet minimum capital requirement norms   -  Nagara Gopal

QIB portion oversubscribed with investments from SBI, LIC

YES Bank’s ₹15,000 crore follow-on public offer managed to sail through on the third day with extended timing for bidding by retail investors and employees.

Data available with exchanges showed it was subscribed 0.95 times with the qualified institutional buyer portion oversubscribed.

On its final day, the QIB portion was subscribed 1.90 times, non-institutional investor portion was subscribed 0.63 times, retail portion was subscribed 0.47 times and employee portion was subscribed 0.33 times.

“The issue has achieved its minimum required subscription of 90 per cent of its total size to sail through and saw strong demand from domestic and international institutions,” said a statement from the bank.

According to market sources, as many as 27 institutions bid for the QIB portion including State Bank of India and Life Insurance Corporation of India. Other investors included IIFL, Edelweiss, HDFC Life Insurance, Punjab National Bank, HDFC MF, Union Bank, Bajaj Holdings, Avendus Wealth Management, IFFCO Tokio General Insurance, Norges Fund, Schonfled, Millennium Management Global, Aurigin Capital, Exodus Capital, Wellington Capital, Jane Street Capital, Segantii Capital Management and De Shaw and Co.

The non-subscribed portion of the FPO according to the underwriting agreement with the bank would be allotted to SBI Capital Markets, which had agreed to underwrite ₹3,000 crore worth of shares at a price equal to the lowest end of the price band.

On July 14, YES Bank had raised ₹4,098 crore from 14 anchors at ₹12 per share.

The private sector lender hopes to use the funds raised to meet minimum capital requirement norms and growth needs over the next two years.

The bank’s scrip closed 2.86 per cent higher on Friday and closed at ₹19.8 apiece on BSE.

Published on July 17, 2020

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