Yes Bank FPO scrapes through with 27 QIB support
Yes Bank's Rs 15K cr FPO sails through as 27 QIBs chip in, SBI Cap will help complete subscription
Mumbai, July 17, 2020: Yes Bank’s Rs. 15,000 cr FPO has scraped through as it achieved the minimum required subscription of 90%. The issue saw a strong demand from domestic and international institutions.
As per market sources, a total of 27 institutions bid for the QIB portion such as SBI, LIC, IIFL, Edelweiss, Bajaj Allianz, HDFC Life, 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 & Co.
On its final day, the QIB portion was subscribed 1.9 times. Non Institutional Investor portion was subscribed 0.63 times, Retail portion 0.47 times and Employee Portion 0.33 times. The bank has stated in its Prospectus that the funds raised are going to be used for growth and expansion including enhancing its solvency, capital adequacy ratio and evolving regulatory requirements.
On July 14, the bank had raised Rs 4098 cr from 14 anchors at Rs 12 per share to US based alternative asset manager, Tilden Park Capital via Bay Tree India
Holdings LLC; Singapore based fund management company, Amansa Capital and UK based Fund management company, Jupiter Funds, collectively these 3 FPIs came together to acquire 75% of the shares offered to the anchors. The other domestic institutions who invested as anchors include HDFC Life Insurance, Bajaj Allianz Life Insurance, ICICI Lombard General Insurance, Reliance General Insurance, RBL Bank Limited, Edelweiss Alternative Investment Opportunities Trust, Elara India Opportunities Fund, Hinduja Leyland Finance and ECL Finance. From sources, it’s understood than 95% of Anchor investors who invested are long only funds.
The non-subscribed portion of the FPO as per it’s underwriting agreement with the bank would be allotted to SBI Capital Markets, who had agreed to underwrite Rs 3000 cr worth of shares at a price equal to the lowest end of the price band.
The new generation private sector bank currently has a presence in 28 states and 8 union territories with a network of 1135 branches and 1423 ATMs and has 1 representative office in Abu Dhabi