IIFL, HDFC MF, Union Bank, Bajaj Holdings, Avendus, Norges Fund, and Jane Street Capital are some of the investors that subscribed to
The institutional investor portion of the FPO garnered nearly two times the subscription. Including the anchor investment, institutional investors poured in nearly Rs 10,400 crore.
On the other hand, the response from individual investors was tepid. The high-networth individual (HNI) investor portion of the FPO was subscribed 63 per cent. The retail and employee portions also remained undersubscribed at 46 per cent and 32 per cent, respectively.
Investment bankers said they were still processing some retail applications.
Shares of YES Bank
ended at Rs 19.8, up 2.9 per cent, on Friday. While the shares were available at a 40 per cent discount in the FPO, many investors stayed away, fearing that the large dilution would depress the secondary market price.
Through the FPO, YES Bank will issue over 12 billion fresh equity shares, almost equal to its current equity base of 12.55 billion shares.
In March, as part of the rescue plan, YES Bank had received a Rs 10,000-crore equity infusion from eight financial institutions led by SBI.
These investors were allotted shares at Rs 10 per share. SBI
had invested Rs 6,050 crore and got a 48.2 per cent stake (pre-FPO basis). It had obtained board approval to invest another Rs 1,750 crore in the FPO.
People aware of the development said most of the eight financial institutions who invested in March also applied in the FPO to prevent their stake from being diluted.
Some analysts had doubted whether Rs 15,000 crore would be enough as growth capital.
“Capital potentially being used to meet regulatory requirements, make provisions and pay employee salaries — not for growth,” Macquarie had said in a note on July 10.