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Yes Bank likely to price initial float at Rs 50 a share

Bank plans to mop up around Rs 350 crore via issue

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Our Banking Bureau Mumbai
Last Updated : Feb 06 2013 | 8:07 AM IST
Yes Bank, the newest private sector bank, is likely to price its initial public offer (IPO) at around Rs 50 per share. The bank plans to mop up around Rs 350 crore through this issue, for which it filed the Red Herring Prospectus with the Securities and Exchanges Board of India (SEBI).
 
The public issue of 7 crore equity shares of Rs10 each will be entirely priced through the book-building process.
 
DSP Merrill Lynch and Enam Financial Consultants have been appointed the book-running lead managers for the issue.
 
"The capital raising exercise will enable the bank to support its growth plans," Rana Kapoor managing director and chief executive officer of Yes Bank told Business Standard.
 
The bank will launch its retail operations in April for which we would need fresh capital, he added. "We plan to complete the capital raising exercise by May," said Rana.
 
The fresh capital infusion will lead to a 25 per cent dilution in the holding of existing shareholders. After the issue, the promoter's holdings in the bank will fall from 52.1 per cent to around 40 per cent.
 
Rabobank International Holding, B.V's stake will come down from 20 per cent to 15 per cent and of the three foreign private equity investors, will come down inthesame ratio.
 
Citicorp International Finance Corporation's stake will slip from 10 per cent to round 7 per cent, of ChrysCapital II LLC from 7.5 per cent to 6 per cent and AIF Capital Inc's holding will come down from 7.5 per cent to 6 per cent.
 
The capital infusion will enable the bank raise its paid up capital to over Rs 300 crore from the current Rs 217 crore. Its capital adequacy ratio will increase from 20 per cent to around 24 per cent.

 
 

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First Published: Mar 17 2005 | 12:00 AM IST

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