State Bank of India (SBI) said its holding in Yes Bank has come down to 30% after the private lender's follow on public offer (FPO).
Before the FPO, SBI's holding in Yes Bank stood at 48.21%, the state-run lender said in a filing on Monday (27 July).With the FPO, the share capital of Yes Bank increased to 2,505.40 crore of face value Rs 2 per share from 1,255 of face value of Rs 2 each, it said.
Following the FPO, SBI holding in Yes Bank stood at 751.66 crore shares, which is 30% of the total share capital.
Yes Bank's follow-on public offer to raise Rs 15,000 crore was subscribed 93% on the final day of bidding. The FPO subscription was 95% after including the anchor investors' portion. The issue opened on 15 July 2020 and closed on 17 July 2020. Yes Bank offered 909.98 crore shares under the public offer at a price band of Rs 12-13 per share. The bank plans to utilise the proceeds from issue to meet its capital requirements to support growth and expansion.
Yes Bank was placed under a "moratorium" on 5 March 2020 by the Reserve Bank of India (RBI) owing to serious deterioration in the financial position of the bank. RBI had capped depositor withdrawals at Rs 50,000 per account for a month and had superseded the bank's board with immediate effect.
On 6 March 2020, the country's banking regulator had unveiled a draft scheme of reconstruction for Yes Bank and invited suggestions from members of public, including the banks' shareholders, depositors and creditors on the scheme. The draft scheme was sent to Yes Bank and State Bank of India for comments.
On 12 March 2020, SBI had informed about the purchase of 725 crore shares in Yes Bank at Rs 10 per share translating into 48.21% stake in the private lender.
Shares of SBI were up 0.03% at Rs 187.20. Shares of Yes Bank were down 8.13% to Rs 11.30.
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