Yes Bank announces launch of $650 million QIP issue
The country's fourth largest private lender set the floor price at Rs 1,498.95 per share.Qualified Insitutional Placement (QIP) issue with an option to upsize to USD 750 million The country's fourth largest private lender set the floor price at Rs 1,498.95 per share based on Securities and Exchange Board of India (SEBI)-calculated average, with an indicative price band of 1,455 - 1,500.00 per share. The price range reflects a discount of 1.22 percent to 4.19 percent to the stock's Thursday closing price of 1,518.60 rupees on the National Stock Exchange. The NSE filing was made after market hours on Thursday. "There will be appetite because of the pricing, " said Prakash Diwan of Altmount Capital Management said earlier in the day amid speculation of the announcement.
He said banking is where size is going to matter. "Yes Bank will need the cash to shore up its balance sheet." The bank had called off a QIP offer for USD 1 billion in September last year. While the market had speculated a poor response, the company cited confusion over QIP guidelines and claimed that the response to the QIP was solid. The price band of the issue for which Goldman Sachs, Motilal and CLSA were the merchant bankers, was Rs 1,350- Rs 1,410 per share. Market regulator Securities and Exchange Board of India had conducted a probe into the matter and contacted Yes Bank's merchant bankers. The regulator's preliminary findings suggested that disclosure requirements had not been correctly followed in the issue.
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The country's fourth largest private lender set the floor price at Rs 1,498.95 per share.Qualified Insitutional Placement (QIP) issue with an option to upsize to USD 750 million The country's fourth largest private lender set the floor price at Rs 1,498.95 per share based on Securities and Exchange Board of India (SEBI)-calculated average, with an indicative price band of 1,455 - 1,500.00 per share. The price range reflects a discount of 1.22 percent to 4.19 percent to the stock's Thursday closing price of 1,518.60 rupees on the National Stock Exchange. The NSE filing was made after market hours on Thursday. "There will be appetite because of the pricing, " said Prakash Diwan of Altmount Capital Management said earlier in the day amid speculation of the announcement.
He said banking is where size is going to matter. "Yes Bank will need the cash to shore up its balance sheet." The bank had called off a QIP offer for USD 1 billion in September last year. While the market had speculated a poor response, the company cited confusion over QIP guidelines and claimed that the response to the QIP was solid. The price band of the issue for which Goldman Sachs, Motilal and CLSA were the merchant bankers, was Rs 1,350- Rs 1,410 per share. Market regulator Securities and Exchange Board of India had conducted a probe into the matter and contacted Yes Bank's merchant bankers. The regulator's preliminary findings suggested that disclosure requirements had not been correctly followed in the issue.
Read more for HNI Stock Tips- http://bit.ly/ace_services
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