Yes Bank Hits Lower Circuit On Excess Share Supply And No Buyers

On Monday, shares of Yes Bank were locked in 10 percent lower circuit after the lender's shares allotted at the follow-on public offer (FPO) got listed at the stock exchanges. Amid excess supply due to listing of fresh equity, BSE data at 11:10 am shows zero buyers for the stock and 6.14 crore sell orders, causing the share price to fall to Rs 12.30 apiece.

Shares of Yes Bank have fallen over 50 percent since the bank announced the price band for its Rs 15,000 crore follow-on public offer (FPO) at Rs 12-13 on 10 July, much lower than the market price of Rs 26.65 on 9 July. Experts said that traders were selling shares to pick up at a cheaper rate at the FPO issue.

On Friday, the scrip closed 7.12 percent lower at Rs 13.70 per share. On the same day stock exchange BSE revised the circuit limit for the stock to 10 percent from 20 percent earlier.

The FPO was open from 15 to 17 July. On the last day of the issue, it 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.

The balance amount would have been contributed by its issue underwriter SBI Capital Markets that had committed underwriting amount of up to Rs 3,000 crore, as per its issue prospectus.

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.