Yes Bank
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Jul 2020 – 17 Jul 2020
- Listing date
- 27 Jul 2020
- Face value
- ₹2 per share
- Issue price
- ₹12 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹15,000 Cr
- ISIN
- INE528G01035
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Bank Ltd.
- Registered office
- YES BANK Tower, IFC - 2, 15th Floor,, Senapati Bapat Marg, Elphinstone (W),, Mumbai 400 013, India, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,41,53,84,614 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹12
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹12,000 |
| Retail (max) | 16 | 16,000 | ₹1,92,000 |
| S-HNI (min) | 17 | 17,000 | ₹2,04,000 |
| S-HNI (max) | 83 | 83,000 | ₹9,96,000 |
| B-HNI (min) | 84 | 84,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|
About Yes Bank
Yes Bank Limited was incorporated as a Public Limited Company on November 21, 2003, and received its license to commence commercial banking on May 24, 2004. The bank launched its Corporate and Institutional Banking (C&IB) and Business Banking operations in August 2004, financial markets and treasury operations in September 2004, and transaction banking business in October 2004. Yes Bank operates through a 'One Bank' business model directed at maximizing revenue generation from customers by offering a full range of products and services to address all their banking needs. The bank earns revenue through credit products, value-added services including financial advisory and transaction banking, and liability products comprising term, savings and current account deposits. Yes Bank has adopted a knowledge-based approach to product structuring and delivery, focusing on identified sectors to develop preferred institutional relationships. The bank has two branches (Mumbai and Delhi) and licenses for 28 additional branches, with strategy focused on the National Capital Territory of Delhi/Northern region. The bank received the only greenfield banking license awarded since 1995 in India.
Company Analysis
from RHPYes Bank is a new private sector bank in India offering corporate and institutional banking, business banking, and retail banking services across multiple focus sectors including food and agri-business, life sciences, infrastructure, and telecommunications, media and technology.
Yes Bank Limited was incorporated as a Public Limited Company on November 21, 2003, and received its license to commence commercial banking on May 24, 2004. The bank launched its Corporate and Institutional Banking (C&IB) and Business Banking operations in August 2004, financial markets and treasury operations in September 2004, and transaction banking business in October 2004. Yes Bank operates through a 'One Bank' business model directed at maximizing revenue generation from customers by offering a full range of products and services to address all their banking needs. The bank earns revenue through credit products, value-added services including financial advisory and transaction banking, and liability products comprising term, savings and current account deposits. Yes Bank has adopted a knowledge-based approach to product structuring and delivery, focusing on identified sectors to develop preferred institutional relationships. The bank has two branches (Mumbai and Delhi) and licenses for 28 additional branches, with strategy focused on the National Capital Territory of Delhi/Northern region. The bank received the only greenfield banking license awarded since 1995 in India.
Objects of the Issue
- To augment long-term capital requirements to successfully implement growth plans ₹3,018.12 million (net proceeds) p.44
- To increase paid-up equity capital in compliance with licensing directives of RBI, which stipulate that paid up capital must be raised to Rs. 3,000 million within three years of commencement of business and maintain minimum capital adequacy ratio of 10% ₹3,018.12 million (net proceeds) p.44
- To diversify shareholding pattern ₹3,018.12 million (net proceeds) p.44
- The document does not specify detailed objects of the issue in this section; it states that 70,000,000 equity shares of Rs. 10 each are being issued at Rs. 45 per share aggregating Rs. 3,150 million. Rs. 3,150 million p.177
Issue Structure
- Total Issue
- ₹3,150 million
- Fresh Issue
- 70,000,000 Equity Shares of Rs. 10 each
- Price Band
- Rs. 38 to Rs. 45 per Equity Share
- Face Value
- Rs. 10 per Equity Share
Business Model
Yes Bank earns revenue through three primary channels: (1) Credit products and services including cash credits, overdrafts, term loans, and bills purchased and discounted; (2) Value-added products and services including financial advisory, financial markets products, transaction banking services, and risk hedging solutions; (3) Liability products including term deposits, savings deposits, and current account deposits. The bank emphasizes a relationship approach with senior management-focused engagement and knowledge-based product delivery in identified focus sectors. Revenue is generated through interest on advances, income on investments, commission, exchange and brokerage, and profit on sale and revaluation of investments.
Business Segments
SWOT Analysis
- • Experienced promoters with proven track record in banking and entrepreneurship(p.61)
- • Only greenfield banking license awarded by RBI since 1995(p.61)
- • Assembled experienced management team from leading banks and financial services(p.61)
- • Knowledge-based banking approach differentiated from competitors(p.61)
- • Technology outsourcing model provides variable cost structure and capital optimization(p.61)
- • Highest short-term rating (A1+) from ICRA despite limited operating history(p.61)
- • Sector-specific expertise with specialized professionals(p.65)
- • Technology-driven outsourcing model for operational efficiency(p.71)
- • Centralized and automated back-office operations(p.72)
- • Strong human capital from leading banking institutions(p.80)
- • Knowledge banking approach in focus sectors(p.65)
- • Experienced management team with strong banking backgrounds(p.116)
- • Support from strong institutional investors including Rabobank and private equity firms(p.134)
- • Strong capital adequacy ratio well above regulatory minimum(p.160)
- • Diversified portfolio across corporate, retail and financial markets segments(p.150)
- • All assets classified as standard assets with nil non-performing assets(p.151)
- • New bank with less than one year of operating history and limited financial information(p.12)
- • Incurred net loss of Rs. 37.59 million in initial operating period; may incur further losses(p.12)
- • Risk of inability to attract and retain talented professionals critical to strategy(p.12)
- • Brand acceptance in Indian market insufficient to assure success(p.12)
- • Only two branches open with limited branch network(p.13)
- • Promoters and major shareholders maintain control, limiting other shareholders' influence(p.18)
- • RBI restrictions on ownership may require significant shareholders to sell holdings(p.20)
- • Certain Promoter Group Companies have incurred losses in recent years(p.20)
- • Highly concentrated loan portfolio across few borrowers(p.79)
- • Early stage of operations with limited deposit base(p.80)
- • Dependence on Rabobank International Holding for financial support(p.98)
- • Limited branch network and geographic presence(p.65)
- • Operational risks from limited operating history(p.77)
- • New bank with minimal operating history and operational start-up challenges(p.150)
- • Significant operating losses and negative return on assets(p.156)
- • Heavy dependence on short-term funding sources(p.162)
- • Limited customer deposit base and early stage deposit taking(p.162)
- • High concentration of advances among top borrowers(p.157)
- • Significant dependence on two promoters holding substantial shareholding(p.113)
- • Build 'One Bank' model to maximize revenue from customers across all channels(p.36)
- • Focus on knowledge banking approach in high-growth sectors(p.63)
- • Expand branch network across Northern region and National Capital Territory(p.36)
- • Develop retail banking business targeting affluent customer segment(p.60)
- • Capitalize on sustainable and responsible banking as competitive differentiator(p.64)
- • Emerging under-serviced Business Banking segment(p.64)
- • Growing Retail Banking segment targeting Affluent and Mass Affluent customers(p.64)
- • Significant growth potential in food and agri-business sector(p.65)
- • Expansion opportunities in retail asset products(p.80)
- • Growing retail sector presents transaction banking and working capital opportunities(p.67)
- • Expansion into new geographic markets, particularly North India(p.64)
- • USAID guarantee facility supporting renewable energy and clean water projects(p.70)
- • Expansion of branch network across India(p.164)
- • Growth in corporate and institutional banking segment(p.150)
- • Development of retail and direct banking channels(p.118)
- • Expansion into new financial services and underwriting activities(p.167)
- • Intense competition from established banks with greater resources and established brands(p.13)
- • Financial sector consolidation may reduce number of entities with larger scale and resources(p.13)
- • Foreign banks permitted to own up to 74% of Indian private sector banks(p.13)
- • Risk of economic slowdown in India affecting business(p.20)
- • Mandatory lending to priority sectors (agriculture and SSI) with inherent risks(p.15)
- • High concentration of loan portfolio in five sectors (75.2% of exposure)(p.15)
- • Delays in collateral enforcement in India due to lengthy foreclosure proceedings(p.14)
- • Interest rate changes may reduce net interest spreads(p.16)
- • Terrorist attacks and civil unrest could adversely affect financial markets and business(p.21)
- • Downgrading of India's debt rating could impact ability to raise overseas financing(p.21)
- • Intense competition from established public and private sector banks(p.79)
- • Regulatory restrictions on branch expansion and rural lending mandates(p.83)
- • Requirement to meet capital adequacy norms within three years(p.99)
- • Interest rate risk exposure from asset-liability mismatches(p.76)
- • Liquidity risk from maturity mismatches and deposit withdrawal volatility(p.76)
- • Foreign exchange rate risk from trading and lending activities(p.77)
- • Dependence on priority sector lending and directed lending requirements(p.87)
- • Competitive Indian banking market with established players(p.162)
- • Interest rate risk from rising funding costs(p.162)
- • Risk of credit rating downgrade affecting borrowing costs(p.162)
- • Regulatory restrictions on foreign investment and shareholding(p.180)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ashok Kapur | Promoter | 17.56% | 13.01% |
| Rana Kapoor | Promoter | 10.00% | 7.41% |
| Ashok Kapur | Promoter | 29.0% | — |
| Rana Kapoor | Promoter | 29.0% | — |
| Rabobank International Holding | Promoter Group | 20.0% | — |
| Citicorp International Finance Corporation | Private Equity Investor | 10.0% | — |
| ChrysCapital II, LLC | Private Equity Investor | 7.5% | — |
| AIF Capital Inc. | Private Equity Investor | 7.5% | — |
| Ashok Kapur | Promoter | 17.56% | — |
| Rana Kapoor | Promoter | 10.00% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.