KRChoksey: Yes Bank’s FPO
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KR Choksey Research Report
Yes Bank is a leading private sector, full-service commercial bank with pan-India presence. As of June 30, 2020, the Bank has a network of 1,100 plus branches and 1,400 plus ATMs. YBL has 3 subsidiaries namely YES Securities, YES Asset Management and YES Trustee. In March 2020, Yes bank had undergone complete restructuring under guidance of Central Government and RBI due to dramatic increase in Non performing Asset. SBI and other investors including HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, The Federal Bank, Bandhan Bank and IDFC First Bank invested an amount aggregating to Rs 10,000 crore in the Bank as a part of restructuring scheme. As a next step, along with new management team in place, Yes Bank is looking at strengthening with this fund-raise.
The Follow-On offer is available at a deep discount of about 40% to the current market price of Rs 22, without lock-in period criteria, which makes it a unique investment opportunity. The FPO is largely aimed to ensure adequate capital buffer to support growth plans, alongside absorbing further stress points from high NPA levels.
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