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    95% of Yes Bank FPO subscribed on last day

    Synopsis

    SBI Capital Markets would have had to underwrite Rs 3,000 crore worth of shares in the FPO, at a price equal to the lowest end of the price band in case of under-subscription.

    Reuters
    The issue attracted bids for 11.88 billion shares, or 95 per cent of the issue size of 12.51 billion shares offered, showed subscription data on NSE.

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    Mumbai: The Rs 15,000-crore follow on public offer (FPO) by Yes Bank scraped through on the last day of the issue on Friday with 95 per cent subscription. According to Sebi norms, companies need a minimum subscription of 90 per cent of the issued amount on the date of closure; else they have to refund the entire subscription amount received.

    SBI Capital Markets would have had to underwrite Rs 3,000 crore worth of shares in the FPO, at a price equal to the lowest end of the price band in case of under-subscription.

    The issue attracted bids for 11.88 billion shares, or 95 per cent of the issue size of 12.51 billion shares offered, showed subscription data on NSE. While the qualified institutional buyers (QIB) portion was subscribed 1.4 times, the segments meant for high net-worth investors and retail buyers were subscribed just 63 per cent and 43 per cent, respectively.

    HDFC Standard Life, Norges Fund, Iffco Tokio, BNP Arbitrage Fund, HDFC Mutual Fund, DE Shaw, PNB Treasury, Jane Street, AURIGIN Funds and Millennium Management Global are some of the large institutional investors that have subscribed to the FPO, according to bankers.

    The issue, which had a price band of 12-13 per equity share of face value of 2 each, got 6.84 lakh applications. Shares of Yes Bank rose 2.86 per cent to 19.80 on Friday.

    On Tuesday, the bank raised nearly Rs 4,100 crore through anchor allotments ahead of its FPO opening. It allotted 3.42 billion equity shares to a total of 14 anchor investors. More than half of the anchor book was subscribed by Bay Tree India Holdings.

    At the upper end of the price band, Yes Bank demands an adjusted price-to-book value of 0.85 times. Although the valuations were much cheaper compared to current market price or compared with peers, many brokers had recommended avoiding the issue citing the stress and poor financial performance that is expected in the foreseeable future.


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    5 Comments on this Story

    Basil Rubber Factory64 days ago
    I think soon the share price will be same as fpo price
    Sonu Kumar65 days ago
    Yes bank is now stablized bank and its growth journey/Golden era starts from now onwards will get fam and glory as it was earlier...
    Sonu Kumar65 days ago
    After FPO,yes bank shall be stabilized,will have adequate liquidity.NOW JOURNEY START and hope this bank shall be next Icici bank in future.
    The Economic Times