Article

Yes Bank FPO: All details and How to Apply for Yes Bank FPO

18 Sep 2020

The primary markets have been dry for the last four months due to the economic lockdown following the COVID-19 pandemic. Even as the economy is trying to recover from the lag effect of the pandemic, the capital market activity has already started. One such important issue is the Follow-on Public Offer (FPO) of Yes Bank that opens on 15th July and will remain open till 17th July.

What is follow-on public offer (FPO)?

An FPO is like an IPO, the only difference being that an FPO is by an existing listed company. An IPO is an initial public offer and is used to raise money from the capital markets as well as to list the stock. In the case of an existing listed stock like Yes Bank, the follow-on public offer route is used to raise fresh funds.

What are the highlights of the Yes Bank FPO?

The Yes Bank FPO opens on 15 July and closes on 17 July. Here are some of the key points you need to know about the Yes Bank IPO.

Particulars

IPO Details

Nature of Issue

Book Built FPO

FPO price range

Rs.12 to Rs.13

Market Lot

1,000 shares

Minimum order (Retail)

1,000 shares

Maximum order (Retail)

15,000 shares

QIB / NIB / Retail

50% / 15% / 35%


Yes Bank FPO Tentative Date/Timetable

FPO opens on

Jul 15, 2020

FPO Closes on

Jul 17, 2020

Basis of Allotment closes

Jul 22, 2020

Refunds Initiated

Jul 23, 2020

Credit to Demat Account

Jul 24, 2020

FPO shares listing

Jul 27, 2020

Shares of Yes Bank FPO will be listed on the BSE and the NSE. The FPO intends to raise nearly Rs.15,000 crore to shore up its Tier-1 capital and the number of shares will be based on the final price discovered in the FPO.

The FPO issue will be lead managed by 8 book runners; Axis Bank, BOFA Merrill, Citigroup, HSBC Securities, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets and Yes Bank. KFIN Technologies (formerly Karvy Computershare Ltd.) will be the registrar to the FPO.

Why is Yes Bank coming out with an FPO?

Yes Bank, it may be recollected, had been put under moratorium in early March 2020 by the RBI due to solvency concerns. However, the RBI intervened and syndicated a rescue of Yes Bank led by SBI along with a consortium of large Indian banks. Currently SBI owns close to 50% of Yes Bank. Out of the FPO issue, SBI also proposes to invest Rs.1760 crore in the offer.

Yes Bank FPO will be raising the funds for 3 reasons. Firstly, the bank needs to shore up its Tier-1 Capital urgently. Secondly, Yes Bank, like most of the other Indian banks, expects the gross NPAs to go up once the EMI moratorium is lifted in August 2020. Lastly, Yes Bank also needs the FPO to create a capital buffer so that it can start building its loan book to participate in the pick-up in the credit cycle.

Understanding the financials of Yes Bank

On a YOY basis, Yes Bank has witnessed a contraction in its assets and revenues due to the crisis that it had to face in March this year. That has also resulted in the bank booking huge losses in FY20. However, now Yes Bank has a major shareholder like SBI, which should give the much needed comfort and stability to the bank.

Particulars

FY-20

FY-19

FY-18

Total Assets

Rs.257,832 crore

Rs.380,860 crore

Rs.312,450 crore

Total Revenues

Rs.10,335 crore

Rs.14,488 crore

Rs.13,032 crore

Net Profits

Rs.(-16,433) crore

Rs.1,709 crore

Rs.4,233 crore

The challenge for the bank is recoup its business position in the coming quarters, with the major consolation being the unstinted backing of SBI.

How to apply for Yes Bank FPO?

Yes Bank FPO applications can be made through banks using the online ASBA facility. Application supported by blocked amounts (ASBA) is a facility to hold funds in your account without actually debiting the same. Investors are also permitted to apply through the broker’s trading interface, subject to their banks supporting ASBA.

It is always advisable to consult with your broker about the fitment of the FPO to your financial needs.

For 5paisa trading customers, you can log on to your Demat cum Trading Account via www.5paisa.com or use the 5paisa app for investment.

Know the steps to invest in Yes Bank FPO - 

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Yes Bank FPO: All details and How to Apply for Yes Bank FPO

18 Sep 2020

The primary markets have been dry for the last four months due to the economic lockdown following the COVID-19 pandemic. Even as the economy is trying to recover from the lag effect of the pandemic, the capital market activity has already started. One such important issue is the Follow-on Public Offer (FPO) of Yes Bank that opens on 15th July and will remain open till 17th July.

What is follow-on public offer (FPO)?

An FPO is like an IPO, the only difference being that an FPO is by an existing listed company. An IPO is an initial public offer and is used to raise money from the capital markets as well as to list the stock. In the case of an existing listed stock like Yes Bank, the follow-on public offer route is used to raise fresh funds.

What are the highlights of the Yes Bank FPO?

The Yes Bank FPO opens on 15 July and closes on 17 July. Here are some of the key points you need to know about the Yes Bank IPO.

Particulars

IPO Details

Nature of Issue

Book Built FPO

FPO price range

Rs.12 to Rs.13

Market Lot

1,000 shares

Minimum order (Retail)

1,000 shares

Maximum order (Retail)

15,000 shares

QIB / NIB / Retail

50% / 15% / 35%


Yes Bank FPO Tentative Date/Timetable

FPO opens on

Jul 15, 2020

FPO Closes on

Jul 17, 2020

Basis of Allotment closes

Jul 22, 2020

Refunds Initiated

Jul 23, 2020

Credit to Demat Account

Jul 24, 2020

FPO shares listing

Jul 27, 2020

Shares of Yes Bank FPO will be listed on the BSE and the NSE. The FPO intends to raise nearly Rs.15,000 crore to shore up its Tier-1 capital and the number of shares will be based on the final price discovered in the FPO.

The FPO issue will be lead managed by 8 book runners; Axis Bank, BOFA Merrill, Citigroup, HSBC Securities, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets and Yes Bank. KFIN Technologies (formerly Karvy Computershare Ltd.) will be the registrar to the FPO.

Why is Yes Bank coming out with an FPO?

Yes Bank, it may be recollected, had been put under moratorium in early March 2020 by the RBI due to solvency concerns. However, the RBI intervened and syndicated a rescue of Yes Bank led by SBI along with a consortium of large Indian banks. Currently SBI owns close to 50% of Yes Bank. Out of the FPO issue, SBI also proposes to invest Rs.1760 crore in the offer.

Yes Bank FPO will be raising the funds for 3 reasons. Firstly, the bank needs to shore up its Tier-1 Capital urgently. Secondly, Yes Bank, like most of the other Indian banks, expects the gross NPAs to go up once the EMI moratorium is lifted in August 2020. Lastly, Yes Bank also needs the FPO to create a capital buffer so that it can start building its loan book to participate in the pick-up in the credit cycle.

Understanding the financials of Yes Bank

On a YOY basis, Yes Bank has witnessed a contraction in its assets and revenues due to the crisis that it had to face in March this year. That has also resulted in the bank booking huge losses in FY20. However, now Yes Bank has a major shareholder like SBI, which should give the much needed comfort and stability to the bank.

Particulars

FY-20

FY-19

FY-18

Total Assets

Rs.257,832 crore

Rs.380,860 crore

Rs.312,450 crore

Total Revenues

Rs.10,335 crore

Rs.14,488 crore

Rs.13,032 crore

Net Profits

Rs.(-16,433) crore

Rs.1,709 crore

Rs.4,233 crore

The challenge for the bank is recoup its business position in the coming quarters, with the major consolation being the unstinted backing of SBI.

How to apply for Yes Bank FPO?

Yes Bank FPO applications can be made through banks using the online ASBA facility. Application supported by blocked amounts (ASBA) is a facility to hold funds in your account without actually debiting the same. Investors are also permitted to apply through the broker’s trading interface, subject to their banks supporting ASBA.

It is always advisable to consult with your broker about the fitment of the FPO to your financial needs.

For 5paisa trading customers, you can log on to your Demat cum Trading Account via www.5paisa.com or use the 5paisa app for investment.

Know the steps to invest in Yes Bank FPO -