BackTilden Park, RBL, Amansa invest ₹4,098 cr as anchor investors in Yes Bank FPO
Tilden Park invested ₹2,250 crore to lead the anchor investment for Yes Bank's ₹15,000 cr FPO
PremiumMumbai: Yes Bank Ltd has allotted 3.41 billion shares worth ₹4,098 crore to anchor investors a day before its follow-on public offering (FPO), it said in an exchange filing on Tuesday. The shares were allocated to the anchor investors at ₹12 per share.
Tilden Park invested ₹2,250 crore to lead the anchor investment for its ₹15,000-crore FPO. The other anchor investors include HDFC Life Insurance, Amansa Holdings, Jupiter India Fund, Bajaj Allianz Life Insurance, ICICI Lombard General Insurance, Reliance General Insurance, RBL Bank, Edelweiss Crossover Opportunities Fund, ECL Finance, Elara Capital, and Hinduja Leyland Finance.
The three-day FPO opens on 15 July. On Monday, the lender said that funds raised from its FPO will take care of its growth requirements for two years. The ₹15,000 crore will be used as buffer provisioning, said Prashant Kumar, managing director and chief executive officer of Yes Bank. He, however, said the provisioning against the impact of covid-19 will not be more than 100 bps.
The bank is aiming for a loan book mix of 60% for retail and small and medium enterprises (SMEs) and 40% for corporates, Kumar said. The private lender is targeting 1% return on assets over the next 1-3 years and 1.5% over 3-5 years.
The bank also aims to hive off its bad loans into a separate subsidiary, Kumar said.
Following the FPO, the bank’s capital adequacy ratio will increase to 13% from the existing 6.3%. SBI, the largest investor in Yes Bank, will invest up to ₹1,760 crore in the FPO. SBI’s additional investment will ensure that its stake does not fall below 26% after the FPO.
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