YES Bank After FPO

Some Interesting facts about Yes Bank:-

 

In year, 1999 following started the NBFC (which is presently known as Yes bank) in partnership with a Netherlands bank naming as Rabobank:-

·         Mr. Ashok Kapur ,ex. country head of ABN Amro Bank

·         Mr. Harkrit Singh , ex. country head of Deutsche Bank

·         Mr. Rana Kapoor, ex. head of corporate finance at ANZ Grindlays Bank 

 

However, bank was formed in Year 2003 and same year Mr. Harkrit Singh quit and remaining two started the bank.

 

·         Ashok Kapur wife is Mrs. Madhu Kapur and because of her wife, Madhu sister Bindu get married to Rana Kapoor and both become relatives as well.

·         In Year 2008 during 26/11 during terror attack at Trident Hotel Mr. Ashok Kapur died and whole family, get into grief and Mrs. Madhu Kapur Nominated her daughter for Board seat but same was rejected by saying that as per RBI guidelines she doesn't fulfil the requirements for becoming a board member.

·         Then all of us know what happens thereafter Mrs. Madhu Kapoor filed case against Mr. Rana Kapoor and during 2018, crises of IL&FS govt. has took over IL&FS and in similar way DHFL and YES bank to safeguard the depositors and not allowing any NBFC or bank into complete shutdown.

 

RBI has taken control over Yes bank and after takeover SBI is major stakeholder in the company:-

 

Holding are as below:-

 

1.     Institutional Holding as on March’2020- 71.03%

·         Breakup is as below:-

·         Mutual Funds Holdings- 0.56%

·         FII Holdings- 1.86%

·         SBI Holding- 48.21%

·         ICICI Bank Holding- 7.97%

·         Axis Bank Holding- 4.78%

·         Bandhan Bank Holding- 2.39%

·         The Federal Bank Holding- 1.92%

·         IDFC First Bank Holding- 1.67%

·         LIC Of India Along With Its Various Scheme-  1.64%

 

2.     Public(Non-Institutional Holding) On March’2020

·         Total Holding- 27.55%

·         Individual share capital in excess of Rs.2 Lacs- 0.98%

·         Individual share capital up to Rs.2 Lacs-11.79%

·         Housing Development Finance Corporation Limited- 7.97%

·         Kotak Mahindra Bank Ltd-3.61%

·         Clearing Members-1.31%

·         Bodies Corporate-0.79%

·         Non-Resident Indian (NRI)-0.66%

·         HUF- 0.24%

·         Employees- 0.18%

·         Trusts-0.02%

Since the Yes Bank takeover by RBI people and corporates has withdrawn lot of money of bank and with FPO (follow-on public offer) it will recover from the huge bad debt and generate funds from the share sale to enhance the capital base.

a)       FPO was having size of Rs. 15000 crores and was Opened from 15^th July 2020 to 17^th July 2020

b)      FPO Price band was Rs. 12-13 per share.

c)       FPO Subscribed for 95% of total value.

d)      FPO get bids for 11.88 billion shares

 

I.             Qualified Institutional buyers portion subscribed 1.4 times

II.             Retail Investors section subscribed 43%.

III.            High net-worth Investors portion subscribed 63%.

IV.            HDFC Standard Life, BNP Arbitrage fund, HDFC Mutual fund, Norges fund, IFFCO Tokio, PNB Treasury and various large institutional investors subscribed for FPO.

V.             Yes bank has raised nearly Rs. 4100 crores from Anchor investors

VI.            Private sector lender YES Bank’s has been able to raise nearly ₹4,100 crore from anchor investors, with more than half of the allocated shares taken by Bay Tree India Holdings.

VII.             According to the filing, Bay Tree India Holdings has picked up 187.5 crore-equity shares amounting to 54.9 per cent of the anchor investor portion. In all, 14 investors have been allocated shares.

VIII.             Other investors include HDFC Life Insurance Company, which has picked 9.77 per cent of the anchor investor portion, Singapore-based fund management company Amansa Capital (9.1 per cent), Elara India Opportunities Fund (9.08 per cent), UK-based fund management firm Jupiter India Fund (3.05 per cent), and Jupiter South Asia Investment Company (0.61 per cent).

IX.            Bajaj Allianz Life Insurance has been allocated 3.66 per cent of the anchor investor portion and Hinduja Leyland Finance Company has received 4.15 per cent of the anchor investor portion.

Investors should not sell the Shares considering strong management of SBI and other banks, further FPO has met the expectations, and funds raised will be sufficient for next 2 years.

Since now parentage are strong of the company Investors should hold the Share for atleast 2 years for getting good returns.

You cannot get private bank share at such a cheap price.

According to company CEO Prashant Kumar raised funds will Common equity Tier-I Capital will go from 6.3% to 13%, which will take care for 2 years requirements.

Further few recoveries from Bad debt will improve the books and fundamentals of the bank.

Hold on as much as years possible.

 

Bid/Offer Opens On	Jul 15, 2020
Bid/Offer Closes On	Jul 17, 2020
Finalisation of Basis of Allotment	Jul 22, 2020
Initiation of Refunds	Jul 23, 2020
Credit of Shares to Demat Acct	Jul 24, 2020
IPO Shares Listing Date	Jul 27, 2020