Yes Bank kicks off roadshows for IPO

The float will remain open for subscription from June 15 to 21.

The public issue of seven crore equity shares of Rs 10 each will be priced through the book-building process. The bank plans to mop up around Rs 350 crore through the issue.

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

Rana Kapoor managing director and CEO of the bank, "The pricing is not directly comparable to the present business of the bank."

The Reserve Bank of India (RBI) has issued 30 new branch licences, and these would be opened in the next one year, he added. "We have put in tremendous effort in past many months to team up a highly experienced management team for the bank," said Kapoor.

The management team has not only added to our expertise but also to the credibility of the bank, he added. "The statistics of the past months and the future prospects promise a strong growth ahead. We are very comfortable with the pricing of the issue, " said Amit R Chandra, joint managing director, DSP Merill Lynch.

"The bank received an approval for the IPO from the Securities and Exchange Board of India in mid May," said Kapoor.

"The fresh capital infusion will enable the bank build its retail branch infrastructure, accelerate lending opportunities across corporate, augmenting the bank's capital base in the process diversifying its source of funds," he added.

Of the seven equity shares at offer the bank plans to allocate up to 50 per cent of the shares to qualified institutional buyers, 25 per cent to non institutional bidders and at least 25 per cent to retail investors.

Fresh capital infusion will led to 25.7 per cent dilution in share holding. Post issue, Rabobank International Holding's stake will come down to 14.8 per cent from 20 per cent.

The collective holding of the promoters and promoter group companies will be reduced to 38.6 per cent, down from 52.13 per cent. The holding of private equity investors will come down to 18.5 per cent from 25 per cent.

The bank in its prospectus filed with the Sebi had stated that, "Rabobank International Holding has indicated its intention to maintain its holding at 20 per cent post issue, subject to regulatory and board approvals.

The capital infusion will enable the bank raise its paid up capital to over Rs 300 crore from the current Rs 217 crore.