Private sector lender Yes Bank has managed to raise Rs 14,267 crore through its follow-on-public offer (FPO), implying 95% subscription of the issue size of Rs 15,000 crore. The issue has achieved the minimum required subscription of 90% of its total size to sail through, the lender said. The institutional investors’ portion got oversubscribed by 1.4 times. The non-subscribed portion of the FPO will be allotted to SBI Capital Markets, who had agreed to underwrite Rs 3,000 crore worth of shares at a price equal to the lowest end of the price band. The FPO had price band of Rs 12-13 per share.
As per market sources, 27 institutions bid for the FPO, including LIC, State Bank of India and Punjab National Bank. The retail portion, however, could only get bids for 47%.
Other investors in the FPO included IIFL, Edelweiss, Bajaj Allianz, HDFC Life, HDFC MF, Union Bank, Bajaj Holdings and Avendus Wealth Management. The company had earlier raised Rs 4,098 crore from anchor investors at Rs 12 per share.
Prashant Kumar, managing director and chief executive officer of Yes Bank, said proceeds from the FPO will not only help shore up its capital ratios, but also give it enough fire power to fund growth over the next two years. The bank is also considering setting up a professionally-run bad bank in partnership with new equity investors.