Yes Bank’s ₹15,000 crore FPO sees 53% subscription on second day
2 min read . Updated: 16 Jul 2020, 06:47 PM ISTOn the first day of the offering, on Wednesday, the FPO was subscribed 24%
The ₹15,000 crore follow-on public offer (FPO) of Yes Bank was subscribed 53% on the second day of the public offer.
The portion set aside for qualified institutional buyers was subscribed 1.44 times and that of non-institutional investors was subscribed 11%, while the subscriptions for the reserved portion of retail investors and employees stood at 21% and 12%, respectively.
On the first day of the offering, on Wednesday, the FPO was subscribed 24%.
The FPO, which will close on Friday, has a price band of ₹12-13 per equity share.
On Tuesday, the lender informed stock exchanges that it had allotted 3.41 billion shares worth ₹4,098 crore to anchor investors a day before its follow-on public offering. The shares were allocated to the anchor investors at ₹12 per share.
Tilden Park invested ₹2,250 crore to lead the anchor investment for its ₹15,000-crore FPO. The other anchor investors include HDFC Life Insurance, Amansa Holdings, Jupiter India Fund, Bajaj Allianz Life Insurance, ICICI Lombard General Insurance, Reliance General Insurance, RBL Bank, Edelweiss Crossover Opportunities Fund, ECL Finance, Elara Capital, and Hinduja Leyland Finance.
The funds raised from its FPO will take care of its growth requirements for two years. The ₹15,000 crore will be used as buffer provisioning, said Prashant Kumar, managing director and chief executive officer of Yes Bank in a press meet on Monday. He, however, said the provisioning against the impact of covid-19 will not be more than 100 bps.
The bank is aiming for a loan book mix of 60% for retail and small and medium enterprises (SMEs) and 40% for corporates, Kumar said. The private lender is targeting 1% return on assets over the next 1-3 years and 1.5% over 3-5 years.
The bank also aims to hive off its bad loans into a separate subsidiary, Kumar said.
Following the FPO, the bank’s capital adequacy ratio will increase to 13% from the existing 6.3%. SBI, the largest investor in Yes Bank, will invest up to ₹1,760 crore in the FPO. SBI’s additional investment will ensure that its stake does not fall below 26% after the FPO.
Click here to read the Mint ePaperLivemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated
×![]()