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Private sector lender YES Bank’s has been able to raise nearly ₹4,100 crore from anchor investors, with more than half of the allocated shares taken by Bay Tree India Holdings.
“The capital-raising committee of the board of directors of the bank, at its meeting held on July 14, approved allocation of 341.53 crore equity shares to the anchor investors…representing allocation of the maximum permissible equity shares to anchor investors,” said YES Bank in a regulatory filing on Tuesday, adding that it has been allocated at a price of ₹12 per share.
At this price, the anchor allocation amounts to ₹4,098.46 crore.
According to the filing, Bay Tree India Holdings has picked up 187.5 crore equity shares amounting to 54.9 per cent of the anchor investor portion. In all, 14 investors have been allocated shares.
Other investors include HDFC Life Insurance Company, which has picked 9.77 per cent of the anchor investor portion, Singapore-based fund management company Amansa Capital (9.1 per cent), Elara India Opportunities Fund (9.08 per cent), UK-based fund management firm Jupiter India Fund (3.05 per cent), and Jupiter South Asia Investment Company (0.61 per cent).
Bajaj Allianz Life Insurance has been allocated 3.66 per cent of the anchor investor portion and Hinduja Leyland Finance Company has received 4.15 per cent of the anchor investor portion.
YES Bank’s FPO will open on July 15 and close on July 17, and the lender hopes to raise ₹15,000 crore of capital. State Bank of India, which already has 48.2 per cent stake in YES Bank, has announced it will invest up to ₹ 1,760 crore in the FPO.
The floor price was fixed at ₹12 apiece.
The bank’s scrip has plunged sharply in the last few days. On Tuesday, it closed 5.2 per cent lower on the BSE at ₹20.95 apiece.
YES Bank’s Managing Director and CEO Prashant Kumar has said the capital-raise will help take care of growth requirements for the next two years and also help meet the regulatory norms. “The CET 1 ratio will increase from 6.3 per cent to 13 per cent,” he had said.
Analysts said they remain concerned about formation of new bad loans that could keep provisions high. “Retail deposit is the key for any bank for lower cost of funds; however, YESBank has witnessed sizable deposit withdrawal over last two quarters. Rebuilding CASA and deposits is a challenging task and would take longer time,” said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking.
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