Yes Bank surges 44% to Rs 65 on debut

Yes Bank scrip got listed at Rs 65 per share, at a 44.4 per cent premium to the issue price Rs 45, on the Bombay Stock Exchange (BSE) today.

The first trade was struck at Rs 65 for 50 shares, said senior Yes Bank officials. The scrip hit an intra day high of Rs 70 and a low of Rs 60.15 to end the day at Rs 60.80. The bank has raised Rs 315 crore through its initial public offering aimed at diluting a 25.93 per cent stake.

The public offer consisting of 70 million equity shares of Rs 10 each which was open for subscription from June 15 to June 21. The IPO was subscribed 30 times.

The greenfield bank's IPO "" priced in the Rs 38-45 band "" is being sold through the book-built route.

DSP Merrill Lynch and Enam Financial Consultants have been appointed as the book-running lead managers for the issue.

"The proceeds from the issue will be utilised to build a strong retail network and support our growth plans," said Rana Kapoor, managing director and chief executive officer, Yes Bank. "The bank will continue to grow organically and build a midsized quality portfolio," said Kapoor.

Post the issue, the bank's capital adequacy stands at 30 per cent, he said.

The fresh infusion of capital has led to a dilution of around 25.93 per cent in the shareholding pattern.

After the public issue, the stake of Indian promoters Ashok Kapur and Rana Kapoor stands at around 19.5 per cent each, compared with 26 per cent each before.

Rabo Bank's stake has come down to 15.3 per cent which it would raise to 20 per cent through open market purchases.

Similarly, the private equity investors "" Citicorp, ChrysCapital and AIF Capital "" which held 10 per cent, 7.5 per cent and 7.5 per cent, respectively "" now stands at 7.41 per cent, 5.55 per cent and 5.55 per cent, respectively, after the issue.