YES bank limited is an Indian public bank which has headquarters in Mumbai and was found in 2004. It was developed as a full- service commercial banking and technology-driven product and services to fulfill the financial needs of various MSME, Corporate and Retail customers.
Now the Yes Bank FPO opens for the subscriptions on Wednesday 15th July 2020. The bank mainly focuses on raising a fresh capital of ₹ 15,000 crores through FPO. The bank replied that they can utilize the ₹ 15,000 crores for the growth requirement purposes for the next two years.
After the troubled situation of yes bank in March, they were backed up by various financial institutions like SBI, Kotak Mahindra Bank, Federal Bank, IDFC First Bank, Housing Development Finance Corp by an investment of ₹10,000 crore through a reconstruction scheme, the bank has been in trouble for a few years now due to giving easy loans to firms while they were unable to get the credit easily else were.
The YES Bank FPO will commence on 15th July and close on 17th July 2020. only a limited period is available for the purchases. Notably, the bids can be made for a minimum of 1,000 shares and in the multiples of 1,000 shares. Thereafter, the bank fixes ₹ 12 as the floor price for equity shares, which is probably 50 percent lower than that of the market price. and there is also a discount allowance for the employees who are bidding in the Employee Reservation portion with a discount of ₹ 1 per share. Another point that can be highlighted is that the shares worth of about ₹200 crores has been reserved for subscriptions for the bank’s employees. The bank can also raise funds through Anchor Investments. The bank has earned around ₹ 4,100 crores from the anchor investment ahead of the FPO opening. The YES Bank granted the approval of the allocation of equity shares at a rate of ₹ 12 per share for the anchor investors.
The private lender allotted 3,41,53,84,614 equity shares to a total of anchor inventors. Bajaj Allianz Life Insurance, Edelweiss crossover opportunities fund, HDFC life insurance, Amansa holdings, Jupiter Indian fund, ICICI Lombard General Insurance, Reliance General Insurance, RBL Bank, ECL Finance are some of the investors. The CEO of YES Bank Mr. Prasant Kumar said that the Common Equity Tier-1 capital which will go from 6.3% to around 13%which helps to take care of the growth requirements for the next 2 years rather than the capital 2.50% as in the deferred tax asset and are not included as recoveries The Stata Bank of India approved investment up to ₹1760 crore in FPO offer of Yes bank. Various Merchant bankers are also ready for the YES Bank FPO.
