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Incorporated in 2003, Headquartered in Mumbai Yes Bank is a private sector bank in India. It has developed as a full-service commercial bank offering banking and technology-driven product and services to fulfill the financial needs of MSME, corporate, and retail customers.
Yes Bank provides merchant banking, investment banking, and brokerage businesses through Yes Securities. The mutual fund business of the company is handled by YES Asset Management (India) Limited, a subsidiary of Yes Bank. It has a pan-India presence across 28 states and 8 Union Territories. One representative office of the bank is also established in Abu Dhabi in March 2020. As of March 31, 2020, the bank has 1,135 branches and 1,423 ATMs. Yes Bank has presence in metro, urban, semi-urban and rural locations across India.
Product and Services:
1. Investment Banking Solutions
2. Yes First Corporate Credit Card
3. Yes Prosperity Purchase Credit Card
4. Treasury and Risk Management Solutions
5. Loans
6. Transactions Banking Solutions
7. Debt Capital Markets
8. Surplus and Investments
9. Digital Banking
After Yes Bank collapse in 2019, SBI has bought around 49% stake and became the shareholder in the company.
The bank is set to launch FPO (follow-on public offer) in the middle of this July to recover from the huge bad debt and generate funds from the share sale to enhance the capital base.
Competitive Strengths
1. Public-private ownership model
2. Strong technology backbone
3. Strong focus on retail and SME advances
4. Pan India presence
Company Promoters:
Yes Bank is professionally managed and it doesn’t have any identifiable promoter.
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | |||
|---|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 2,578,321.64 | 3,808,596.10 | 3,124,496.54 | |
| Total Revenue | 103,350.56 | 144,879.93 | 130,323.20 | |
| Profit After Tax | (164,325.80) | 17,092.66 | 42,332.20 | |
Objects of the Issue:
The proposed utilisation of the net proceeds is for ensuring adequate capital to support growth and expansion, including enhancing the bank’s solvency and capital adequacy ratio.
Yes Bank FPO Details
| IPO Date | Jul 15, 2020 – Jul 17, 2020 |
| Issue Type | Book Built Issue FPO |
| Issue Size | [.] Eq Shares of ₹2 (aggregating up to ₹15,000.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹2 (aggregating up to ₹15,000.00 Cr) |
| Face Value | ₹2 Per Equity Share |
| IPO Price | ₹12 to ₹13 Per Equity Share |
| Employee Discount | ₹1 per share |
| Market Lot | 1000 Shares |
| Min Order Quantity | 1000 Shares |
| Listing At | BSE, NSE |
Yes Bank FPO Tentative Date / Timetable
| Bid/Offer Opens On | Jul 15, 2020 |
| Bid/Offer Closes On | Jul 17, 2020 |
| Finalisation of Basis of Allotment | Jul 22, 2020 |
| Initiation of Refunds | Jul 23, 2020 |
| Credit of Shares to Demat Acct | Jul 24, 2020 |
| IPO Shares Listing Date | Jul 27, 2020 |
Yes Bank FPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 1000 | ₹13,000 |
| Maximum | 15 | 15000 | ₹195,000 |
Note
- QIB: 50% of the net offer; NIB: 15% of the net offer; Retail: 35% of the net offer
- Employee reservation portion: ₹200 cr
- Employee discount: ₹1 per share