Yes Bank FPO: Excellent response from anchor investors, MD Prashant Kumar tells Anil Singhvi

Yes Bank Follow-on Public Offer (FPO) has opened today and it is getting an excellent response, bank’s Managing Director (MD) and Chief Executive Officer (CEO) Prashant Kumar told Zee Business Managing Editor Anil Singhvi in an exclusive interview. The MD spoke about the price band of shares in this issue, business focus and much more.

Kumar said that the price band of the shares is decided after consultations with the merchant bankers and also on the basis of the book value. The book value of the share is Rs 17, he added. He was responding to a query about the basis of price band (Rs 12-13) for this issue.

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#NewsParViews | FPO को एंकर निवेशकों से मिला बेहतरीन रिस्पॉन्स... हमारा फोकस छोटे कॉरपोरेट, MSME और रिटेल ग्राहकों पर: प्रशांत कुमार, MD & CEO, यस बैंक #YesBank #FPO @AnilSinghvi_ @YESBANK @pk63 pic.twitter.com/WopzwLBcxs

— Zee Business (@ZeeBusiness) July 15, 2020

 The bank is planning to raise Rs 15000 cr through this FPO which is open till 17 July (Friday).

Kumar said that this is a fresh journey for Yes Bank and the management wants its investors to get rewarded.

The bank has received a very good response towards its anchor book and around 75 per cent allocation has been done for Foreign Institutional Investors (FPI) while the remaining 25 per cent is for domestic investors. The FPIs have come from different geographies including from US, Hong Kong and London.

The US-based Tilden Park leads the anchor investors. Kumar said that Asset Under Management (AUM) for this investor is around USD 4 billion and it has specialisation in distressed assets. As for domestic investors, HDFC Life and Bajaj Life Insurance are part of the anchor book.

A part of this Rs 15000 cr raised through this public issue will be used as a buffer for provisioning, Kumar said adding that in uncertain times like today, it is necessary to keep a buffer. The money will also be used for growth purposes, he added.

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On the bank’s strategy, going forward, the MD said that the focus will now be on MSMEs, retail and small corporate loans instead of big ones.