YES Bank sets FPO price at Rs 12, stocks tumble 5%

NEW DELHI: YES Bank, which is in process of launching its follow-on public offer (FPO) to raise Rs 15,000 crore, on Friday fixed the floor price at Rs 12 per share, a discount of 55 per cent against the last closing price.

The bank in a regulatory filing said the cap price will be Rs 12 per share while its employees who bid for the employee reserved portion of the issue will get a discount of Re 1 per share. The bank has reserved a portion of up to Rs 200 crore for employees in the forthcoming FPO.

Following the announcement, shares of YES Bank traded down 4.88 per cent at Rs 25.35 on BSE.

An investor will have to bid for a minimum 1,000 shares and in the multiples of 1,000 equity shares thereafter. That means the minimum bid for regular investors will be worth Rs 12,000 and for employees Rs 11,000.

The FPO issue will open from July 15 to July 17 and bidding by anchor investors will be held on July 14. A board meeting is scheduled to be held on July 14 for the purposes of allocation of shares to the successful anchor investors.

A clutch of top-rated insurers and asset managers is set to invest in the share sale, ET reported. US-based asset manager Tilden Park, Life Insurance Corporation (LIC), HDFC AMC and HDFC Life are among the companies set to invest in the issue, said three people aware of the developments. ICICI Prudential Life Insurance and Max Life Insurance are also in talks to subscribe, bankers said.

SBI, which is the biggest shareholder in YES Bank, providing further support said its executive committee of the central board has given approval for a maximum investment of up to Rs 1,760 crore in the FPO.