Yes Bank’s Rs 15,000-crore FPO or follow-on public offer concluded on Friday with a total subscription of 93 per cent. The subscription window for the Yes Bank FPO had opened on July 15. The follow-on offer received 847.82 crore bids by the end of the final day of issue, against its total size of 909.98 crore shares, marking a subscription of 93.17 per cent, data from the National Stock Exchange (NSE) showed. Yes Bank plans to utilise the proceeds from issue to meet its capital requirements for the next two years.
Yes Bank had fixed a price band of Rs 12-13 per share for the follow-on public offer.
Yes Bank was on the brink of collapse earlier this year due to its past history of providing easy loans, which ended up as non-performing assets – or bad loans – on its books.
The Reserve Bank of India (RBI) took control of Yes Bank, after the bad-debt laden lender failed to raise the capital needed to stay above mandated regulatory requirements.
Since then, State Bank of India (SBI) has stepped in to acquire a stake in Yes Bank and to keep the private sector lender afloat.
SBI’s total investment is not likely to exceed Rs 10,000 crore, according to the bank’s chairman.
Yes Bank shares closed 2.86 per cent higher at Rs 19.80 apiece on the BSE, outperforming the benchmark Sensex index which rose 1.50 per cent.
At the current level, the Yes Bank stock is down 57.83 per cent so far this year.