The Yes bank was incorporated in the year 2003, at Headquartered in Mumbai. In India, it is a private sector bank. The bank has developed as a full-service commercial bank. They offer banking as well as technology-driven product and services to fulfill the financial needs of MSME, corporate, and also retail customers. The article is about Yes Bank FPO Review.
The bank gives merchant banking, investment banking, and brokerage businesses through Yes Securities. Moreover, the YES Asset Management group handles the mutual fund business of the company. It is a subsidiary of Yes Bank. It has a pan-India presence across the 28 states and 8 Union Territories. As of March 31, 2020 update, the bank has near about 1,135 branches and 1,423 ATMs. And the bank has a presence in the metro, urban, semi-urban, and also rural locations across India.
Yes Bank FPO Review FAQs
Yes Bank FPO (follow on public offer) are proposed to be listed on BSE NSE. It has equity shares of the face value of ₹2 aggregating up to ₹15,000.00 Crores. The bank issue is priced at ₹12 to ₹13 per equity share. Here, the minimum order quantity is 1000 Shares. The issue will open on 15th July 2020 and close on July 17, 2020.
The Yes Bank Follow on Public Offer opens on Jul 15, 2020, and closes on Jul 17, 2020.
You can easily apply in Yes Bank FPO online by using either UPI or ASBA as payment method. The IPO application is available in the net banking of your bank account. Brokers offer the UPI IPO application method.
The finalization of Basis of Allotment for Yes Bank FPO will be done on Jul 22, 2020, and the allotted shares will be credited to your Demat account by Jul 24, 2020. Check the Yes Bank FPO allotment status.
The Yes Bank FPO listing date is not yet announced. The tentative date of Yes Bank FPO listing is Jul 27, 2020.
Product and Services:
The Yes Bank has multiple and versatile products and services. They have investment banking solutions, credit card service, loans, banking solutions, debt capital markets, digital banking, etc.
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) on July 15th, 2020 to recover from the huge bad debt and generate funds from the share sale to enhance the capital base.
Competitive Strengths
Here, is the list of the company’s competitive strengths. Among the strong points of the company, there are public-private ownership model, strong technology backbone, strong focus on retail as well as SME advances.
1. Public-private ownership model
2. Strong technology backbone
3. Strong focus on retail and SME advances
4. Pan India presence
Company Financials:
The next most important point is the company’s financials. From the financials, you will get to know about the constant profit-loss summary of the company. As you can see from the chart that the company has gained stable and constant profits overall in the years. In the financial year 2018, the company’s PAT (Profit After Tax) was 42,332.20 (millions), in F19, the PAT was 17,092.66 and in FY 20, the PAT was 164,325.80.
| 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 utilization of the net proceeds is for ensuring adequate capital to support growth and expansion, including enhancing the bank’s solvency and capital adequacy ratio.
FPO Details
The FPO details contain FPO starting and ending date, issue type, issue size, fresh issue, face value, price, employee discount, market lot, minimum order quantity, listing exchange.
| FPO 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 |
| FPO 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 |
| Finalization of Basis of Allotment | Jul 22, 2020 |
| Initiation of Refunds | Jul 23, 2020 |
| The credit of Shares to Demat Acct | Jul 24, 2020 |
| IPO Shares Listing Date | Jul 27, 2020 |
| YES BANK DRHP |
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
Yes Bank FPO Review
The bank’s revenue is more or less almost stable over the years. The financials have been hit because of two major bad loans. The reconstruction scheme formulated must help the bank cover up for the losses incurred over a while. However, the issue is offered at almost 50% discount in comparison to the last traded price. By considering these factors, investors should look to invest in the offer and hold it for a longer period. So, Yes Bank FPO Review carries a NEUTRAL view. On the last day of the issue, you can check the bid details of the FPO from the NSE site.