Private sector lender Yes Bank has fixed price band for follow-on public offer (FPO) at Rs 12-13 per share, the lender said on Friday. At the upper band of Rs 13, Yes Bank’s FPO will be at 49% discount to Friday’s closing of the stock. Yes Bank on Friday closed 4.32% down at Rs 25.50 on the Bombay Stock Exchange (BSE). The prospective shareholders can bid in the lot of 1,000 shares, the lender said. It had earlier informed that FPO would open on July 15 and close on July 17.
A discount of Rs 1 per equity share will be given to the eligible bank employees, bidding in employee reservation portion. The lender has kept Rs 200 crore reserved for its employees. Earlier this week, Yes Bank had received approval from the capital-raising committee (CRC) of its board to raise funds through the offering.
The next CRC meeting is scheduled for July 14. The committee will decide on the allocation of equity shares to successful anchor investors, Yes Bank said. State Bank of India’s (SBI’s) central board had given approval for a maximum investment of up to Rs 1,760 crore in Yes Bank’s FPO.
In the red herring prospectus (RHP), filed by Yes Bank, it had highlighted several risks faced in the current environment. The private lender said there was the risk of a prompt corrective action (PCA) that could be imposed by the Reserve Bank of India (RBI) due to lower capital ratios.
Yes Bank’s common equity Tier-I (CET 1) capital stood at 6.3% as in March 2020, which was lower than RBI’s minimum requirement of 7.375%. The bank also mentioned 167 pending litigations, which could have a material impact of Rs 56,717 crore on the lender.