Yes, Bank which had tapped the capital markets with its follow-on public offer to raise Rs 15,000 crs fell short of just about getting subscribed. The company received bids for 1189.40 cr shares and was subscribed 95%. The price band was Rs 12-13 and the company would be allotting shares at Rs 12 in the offer. There is an underwriting commitment made by SBI Capital Markets Limited to the extent of Rs 3,000 crs, which means that the issue would be fully subscribed and all valid applications would get shares in full.

Earlier the company had allotted 341,53,84,614 equity shares (341.53 cr) to 14 anchor investors. The largest allotment is to Bay Tree India Holdings I LLC who was allotted 187.50 cr shares or 54.90% of the total anchor book. The other investors included HDFC Life, Amansa Holdings and Elara India opportunities fund who were allotted over 9% each. There is no allotment to SBI or domestic mutual funds.

The public issue saw subscription and the issue garnered support for 909.97 cr shares. QIB’s subscribed to 523.48 cr shares and the bucket was subscribed 1.90 times. HNI portion received bids for 116.72 cr shares and was undersubscribed at 0.63%. Retail subscription was for 201.74 cr shares and was undersubscribed at 0.47%. Employee quota received bids for 5.91 cr shares and was undersubscribed at 0.33 times.

The share price of Yes Bank lost Rs 5.70 or 22.35% to close at Rs 19.80 during the week. Shares of Yes Bank allotted through the follow-on offer are to list on Monday the 27th of July by which time the market price would be close to Rs 12-14. How they correct in the remaining five trading sessions is a matter of discussion and permutation and combinations. Grey market premiums which existed some time ago have now disappeared and there is no premium.

Full details of the subscription are given below: –

Rossari Biotech Limited which had tapped the capital markets with its simultaneous fresh issue of Rs 50 crs and an offer for sale of 1.05 cr shares was oversubscribed a whopping 79.37 times. The price band of the issue was Rs 423-425 and was open from Monday the 13th of July to Wednesday the 15th of July. Earlier the company had allotted 35.02 lac shares to 15 anchor investors comprising of 29 entities. The highest allocation of 3,29,420 shares was made to three individual investors which constituted 9.4% of the anchor allocation was made to Ashoka India, Nalanda Fund and Nippon India. Besides the above, three mutual funds HDFC, ICICI and SBI were also allotted the similar 9.4% in various schemes.

The issue was subscribed 85.26 times by QIB’s, 239.83 times by HNI’s and 7.23 times by Retail investors. There were 6,16,155 applications and on the basis of lots the Retail portion was subscribed 5.28 times.

The leveraged investor cost of funding at 7% would be Rs 136.83 while at 6.5% would be Rs 127.06. This effectively means that the base level for the share on listing day becomes Rs 552 – 562 for leveraged HNI depending on the rate of interest he has borrowed at. This effectively means a premium of 30-32% on the issue price of Rs 425. Anything less than this would bring pressure on the share as those investors who have borrowed/leveraged and applied for 17.51 lac shares out of a total issue of 116.76 lac shares would determine the movement of the share.

The full details of the subscription are given below: –