On the last day of Yes Bank's Rs 15,000-crore follow on public offer (FPO), that is on Friday, the issue was subscribed by as much as 95 percent. As per SEBI rules, companies need a minimum subscription of 90 percent of the issued amount on the date of closure to go ahead or return the application amount received for subscription on failing to do so.
Yes Bank's FPO received bids for 11.88 billion shares against issue size of 12.51 billion shares offered, according to data on NSE. The issue was well received by institutional investors but lacked interest among HNIs and retail investors.
The portion reserved for qualified institutional buyers (QIB) was subscribed over 100 percent while the segments meant for high net-worth investors and retail buyers were subscribed just 63 percent and 43 percent, respectively.
Some of the institutional investors that participated in the deal include State Bank of India, Life Insurance Corp of India, IIFL, Edelweiss, Bajaj Allianz, HDFC Life, Punjab National Bank, HDFC MF, Union Bank, Bajaj Holdings, Avendus Wealth Management, IFFCO Tokio General Insurance, Norges fund, Millennium Management Global, Aurigin Capital, Exodus Capital, Wellington Capital, Jane Street Capital, said a Mint report citing an unnamed person advising the bank on the issue.
While the bank has managed to raise only Rs14,267 crore out of its total target of Rs 15,000 crore, the shortfall is likely to be funded by SBI, the report added. Another unnamed person, also advising the bank, told Mint that the non-subscribed portion of the FPO would be allotted to SBI Capital Markets, who had agreed to underwrite Rs 3000 crore worth of shares at a price equal to the lower end of the price band.
"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," said Prashant Kumar, managing director and chief executive of Yes Bank, in a statement.
Earlier on Tuesday, Yes Bank informed the stock exchanges that it had allotted 3.41 billion shares worth Rs 4,098 crore to anchor investors a day before its FPO opened at Rs 12 per share.
Tilden Park invested Rs 2,250 crore to lead the anchor investment. The other anchor investors included HDFC Life Insurance, Amansa Holdings, Jupiter India Fund, Bajaj Allianz Life Insurance, ICICI Lombard General Insurance, Reliance General Insurance, RBL Bank, Edelweiss Crossover Opportunities Fund, ECL Finance, Elara Capital, and Hinduja Leyland Finance.