Financial Daily from THE HINDU group of publications
Friday, Jun 03, 2005
Money & Banking
Yes Bank fixes IPO price band at Rs 38-45
Mr Rana Kapoor
Mumbai , June 2
YES Bank has announced that it will enter the capital market with its initial public offer on June 15 to raise Rs 266-315 crore. The issue will close on June 21.
Yes Bank will offer seven crore equity shares of Rs 10 face value through a 100 per cent book building route. The price band for the shares has been fixed at Rs 38-45.
The bank had filed a red herring prospectus with the SEBI in March 2005.
The promoters of Yes Bank, Mr Rana Kapoor and Mr Ashok Kapur, currently hold 52.1 per cent of the outstanding equity shares.
Post-issue, their stake will come down to less than 39 per cent, said Mr Kapoor, Managing Director and CEO.
Of the seven crore shares, the bank plans to allocate up to 50 per cent of the issue to qualified institutional buyers (QIBs), at least 25 per cent to non-institutional bidders, and at least 25 per cent to retail investors.
While allotment to QIBs would be on a discretionary basis, allotment to non-institutional bidders and retail investors would be on a proportionate basis, said a bank release.
Mr Kapoor said, "All existing shareholders will dilute capital in the bank."
The stake of CVC-Citigroup-New York, which is currently at 10 per cent, will come down to 7.4 per cent post-IPO.
Similarly, the stakes of AIF Capital-Hong Kong and ChrysCapital-San Francisco, currently at 7.5 per cent each, which will come down to 5.6 per cent each after the IPO, Mr Kapoor added. Post-issue, the paid-up capital of the bank will be Rs 270 crore.
The money raised will be used to invest in expansion and retail bank operations.
The bank has 36 licences across the country and is planning to launch them by March 2006. "We want to build and augment our retail infrastructure," Mr Kapoor said.
The additional capital will also help the bank accelerate credit lending to corporate and small and medium enterprises, and also strengthen the capital base.
The book-running lead managers for the issue are DSP Merrill Lynch and Enam Financial Consultants.
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