MUMBAI, JULY 16, 2020 (GPN): The full service commercial bank announced its Rs. 15K Cr fundraising plan via the Further Public Offering on July 13, 2020 on Day 1 saw a subscription of 24%, the QIB bids started coming on the first day itself and HNI and Retail book was subscribed 4% and 9% subsequently.

The issue has seen a considerable movement on Day 2 especially from the Qualified Institutional Bidders, whose book stood subscribed 1.44 times on the upper side of the price band. The retail portion was subscribed 0.21 times and the HNI category subscribed 0.11 times and Employee category subscribed 0.12 times .Bids of 4,341,540,000 shares were received against the shares offered.

While there has been a mixed response amongst brokerage houses citing asset quality and the onset of NPAs as a concern, well established organizations like NVS Wealth, GEPL Capital, Asit C Mehta Investment Intermediates, KR Choksey, Hem Securities, Choice broking have given investor a green signal to subscribe to the issue and have advised to have a long term outlook in mind considering the banks scalability potential, leadership in payments ; widespread geographic presence ; the faith in its new reconstituted board and their clarity on near and medium term objectives to achieve normalcy

As stated in the RHP, the funds are being raised to ensure adequate capital to support its growth and expansion, including enhancing its solvency, capital adequacy ratio, and evolving regulatory requirements.

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.

Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DSP Merrill Lynch Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited and YES Securities (India) Limited are the appointed BRLMs to the issue. ENDS