Shares of YES Bank were locked in 10 percent lower circuit at Rs 12.30 on the BSE on Monday after the company's shares allotted in the follow-on public offer (FPO) got listed on the bourses.

Share Market Live

NSE

"12,504 million equity shares of YES Bank are listed and admitted for trading on the exchange with effect from July 27, 2020. These shares rank pari-passu with the existing equity shares of the company," said the BSE in its release.

The private sector lender raised Rs 15,000 crore through the FPO, which was subscribed 95 percent and issuing shares at the price of Rs 12 per share. The issue opened on July 15 and closed on July 17 and the issue price was fixed at Rs 12 per share, the lower end of the price band of Rs 12-13.

The stock of the new generation private sector bank has consistently been falling since the pricing announcement of the FPO on July 10, down nearly 50 percent since then. The stock shed 55 percent after the announcement of FPO price band just on July 10.

The lender has specified clearly that the proceeds from the issue will be used in ensuring adequate capital to support growth and expansion, including enhancing its capital adequacy and solvency ratio.

On July 14, the bank had also raised Rs 4,098 crore from 14 anchors at Rs 12 per share to US-based alternative asset manager, Tilden Park Capital via BayTree India Holdings LLC; Singapore-based fund management company, Amansa Capital and UK-based Fund management company, Jupiter Funds, collectively these 3 FPIs came together to acquire 75 percent of the shares offered to the anchors.

Rating agency Moody's feels that capital raising by the bank is credit positive. It added that the fresh equity capital injection is credit-positive for YES Bank as it strengthens the lender’s capitalisation and loss-absorbing buffers. It will also reduce default risk for its creditors, it said.

First Published:Jul 27, 2020 11:15 AM IST