MUMBAI, 18 JULY, 2020 (GPN): Prashant Kumar, MD & CEO, YES BANK said, “We are pleased with the completion of our further public offering and would like to thank all the investors, partners and employees who have supported the issue. It is an important step in our journey of transformation and is a testament to the trust placed in the institution.”

Overall issue subscribed 95% including the anchor book on Day 3 

The full service commercial bank announced its Rs. 15K Cr fundraising plan via the Further Public Offering on July 13, 2020. The issue has achieved its minimum required subscription of 90% of its total size to sail through. 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 1.90 times, Non Institutional Investor portion was subscribed 0.63 times, Retail portion was subscribed 0.47 times and Employee Portion was subscribed 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. ENDS