Incorporated in 1998, SBI Cards and Payment Services Limited is a subsidiary of SBI, India's largest commercial bank in terms of deposits, advances and the number of branches. SBI currently holds (along with its nominees) 689,927,363 Equity Shares, constituting to 74.00 % of the pre-Offer issued, subscribed and paid-up Equity Share capital of the Company.
The company the 2nd largest credit card issuer in the country, with a 17.6% and 18.1% market share of the Indian credit card market (number of credit cards) as of March 31, 2019, and November 30, 2019, respectively, and a 17.1% and 17.9% market share of the Indian credit card market ( total credit card spends) in fiscal 2019 and in the eight months ended November 30, 2019.
SBI Cards offers a wide range of credit cards to individual and corporate clients including lifestyle, rewards, shopping, travel, fuel, banking partnership cards, and corporate cards, etc.
SBI Cards has partnered with several leading names across industries, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, amongst others.
As a subsidiary of SBI, the company has access to SBI's extensive network of 21,961 branches across India. The partnership enables it to market its cards to a huge customer base of 445.5 million customers.Headquartered in New Delhi, as of December 31, 2019, the company has a sales force of 38,677 outsourced sales personnel operating out of 145 Indian cities.
The company's total income increased at a CAGR of 44.9% and the revenues from operations have increased at a CAGR of 44.6% between fiscal 2017 to 2019. The net profit grew at a CAGR of 52.1% during the period.
Competitive Strengths1. 2nd largest credit card issuer in India with a strong track record of growth and profitability.2. Leading player in open market customer acquisitions using physical and digital channels in India.3. A well-known promoter in SBI with strong brand recognition.4. Diversified credit card portfolio and partnerships with leading brands across industries.
• Second public issue from new generation bank after 2005• FY20 mega losses are the results of few defaulting loans.• The issue is priced at a discount to its NAV and the LTP.• According to BRLMs, many big corporate/institutions are likely to participate in this offer.• Long term investors can consider parking their funds.
Perhaps, for the first time in the history of the Indian market, a company is doing a fresh issue on a fast track. In this case, according to information available, the bank got in-principal approval for FPO of Rs. 15000 cr. from the regulator and instead of filing DRHP for approval, it opted for direct filing of RHP with Registrar of Companies (RoC). Having received RoC approval, it has now filed documents with SEBI for records.
Yes Bank Ltd. (YBL) is a new generation private sector bank in India incorporated as a public limited company in November 2003 and obtained certificate of commencement of business in 2004. In May 2004, it was granted a license by the RBI under Section 22(1) of the Banking Regulation Act to commence banking operations in India. In March 2020, the Government of India notified the "YES Bank Limited Reconstruction Scheme 2020" and the Board was reconstituted with eight eminent professionals with vast experience within the banking industry. Since the implementation of the Reconstruction Scheme, the bank has formulated new strategic objectives which aim at augmenting deposit base and liquidity buffers, optimizing operating costs, building stronger governance and underwriting framework and focusing on stressed assets resolution over the next six to twelve months.
Amidst the challenging environment, it continues to develop young and dynamic talent pool as an investment in human capital is the key to long term sustainable success. As one of India's new generation private sector bank, its presence covers all 28 states and eight union territories in India and one representative office in Abu Dhabi as of March 31, 2020. It is a full-service commercial bank specialising in merchant banking, digital banking, brokerage business, asset management and investment banking.
As of March 31, 2020, the Bank has a network of 1,135 branches and 1,423 ATMs. Its branches increased to 1,135 as of March 31, 2020, from 631 as of March 31, 3015 to 1,000 as of March 31, 2017. Bank's extensive network of branches includes 250 hub branches, 850 spoke branches, and with approximately 85% of its branches with more than three years vintage. YBL's branches are geographically extensive with 386, 236, 298 and 215 in metro, urban, semi-urban and rural locations respectively. It has been recognized in India, as well as globally, with various awards and recognitions, such as the winner of the "Most Customer-Centric Bank" in the medium-size banks category, and runner up for "Best Technology Bank of the Year" and "Best Use of Data and Analytics" in the medium-size banks category at the Indian Banks' Association Banking Technology Awards in 2019, "Best Bank for SMEs in India" by Asiamoney Best Banks Awards 2019 and ranked 1st for "Dream Company to Work For" and "Best Employer Brand" at the 13th Employer Branding Awards, in 2019.
YBL is also ranked first as a remitter bank for IMPS by National Payments Corporation of India ("NPCI") in the peer group for 2019 and 1st about the promotion of Digital Payment and exemplary performance in Digital Payments across 56 Public and Private sector banks in India by the Ministry of Electronics & Information Technology. It provides a knowledge-based approach to banking that adds value for its customers by allowing them to capitalize on the bank's knowledge in specific business sectors as well as across products. This approach enabled further by the use of efficient technology-based solutions, strengthens our relationships with customers by allowing it to develop those existing relationships to cross-sell a full range of product and service offerings, with increasing thrust on transaction banking and payments.
As a new generation bank, it has been able to invest in the latest technology infrastructure and applications to enhance the customer experience across all service delivery channels, including digital banking. YBL has undertaken several IT and digital initiatives that are expected to contribute to its business shortly, including Aadhar Enabled Payment System, Immediate Payment Service and Unified Payments Interface. The bank aims to develop a scalable platform as it focuses on retail and SME advances. Its strategic initiatives in the enhancement of SME capabilities include financing vendors of corporates, tie-ups with trade and industry relationships and expanding its liability business through branches and CRM based sourcing. As of March 31, 2020, it has 50 dedicated SME branches in SME hubs it intends to increase customer base in its corporate banking, medium enterprises banking, SME banking and retail banking business segments through a focused customer relationship management approach.
ISSUE DETAILS/CAPITAL HISTORY:
To meet its revised capital adequacy norms to support its growth and expansion plans, YBL is coming out with Follow-on Public Offer (FPO) of 11551282051 equity shares of Rs. 2 each via book building route. It has fixed the price band of Rs. 12 to Rs. 13 per share. YBL mulls raising Rs. 15000 cr. from this FPO. This is the second public offer from this bank after 2005. The maiden IPO was oversubscribed by 29.13 times (QIB 31.32 times, HNI 43.75 times and Retail 10.15 times).
It opens for subscription on 15.07.20 and will close on 17.07.20. Minimum application is to be made for 1000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE and NSE. This issue constitutes 47.93% of the post issue paid-up capital of the bank. Management clarified that estimates of issue expenses are not a part of RHP and the same will be dealt with only in the final RHP post issue.
Out of the entire issue, the bank has kept shares worth Rs. 200 cr. reserved for its eligible employees. From the rest Rs. 4400 cr. for anchor investors, QIBs Rs. 2960 cr., NIIs Rs. 2220 cr., Retail Rs. 5180 cr. The bank is offering Re. 1 per share discount to its eligible employees.
This issue is jointly lead managed by Kotak Mahindra Capital Co. Ltd., SBI Capital Markets Ltd., Axis Capital Ltd., Citi Global Markets India Pvt. Ltd., DSP Merrill Lynch Ltd. (BofA Securities), HSBC Securities and Capital Markets (India) Pvt. Ltd., ICICI Securities Ltd. and Yes Securities (India) Ltd. KFIN Technologies Pvt. Ltd. is the registrar to the issue.
In the year 2019, YBL has issued (FV Rs. 2 per share) 211600 shares at Rs. 76.81 per share on 10.08.19 (ESOP), 231055018 shares at Rs. 83.55 on 15.08.19 (QIBs), 22300 shares at Rs. 55.77 per share on 16.09.19 (ESOP), 140000 shares at Rs. 53.88 per share on 13.11.2019 (ESOP) and 10000000000 shares at Rs. 10 per share (FV Rs.2 per share) on 14.03.2020 under reconstruction scheme introduced by RBI to the consortium of banks that included State Bank of India, HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank and IDFC First Bank. As on the date of filing of RHP, the bank has 2138050 shareholders. Out of this consortium team, SBI will have three years lock-in for its 26% stake while all others will have a lock-in of three years for their 75% holding.
Post issue bank's current paid-up equity capital of Rs. 2510.09 cr. will stand enhanced to Rs. 4820.35 cr. Post this issue, YBL is looking at a market cap of Rs. 31215.28 cr. with this FPO. Its current market cap is Rs. 32003.70 based on LTP related to the latest paid-up equity capital of Rs. 2510.09 cr.
As per re-stated financial data, the bank has posted total revenue/net profit (Loss) of Rs. 25561.75 cr. / Rs. 4233.22 cr. (FY18), Rs. 34299.28 cr. / Rs. 1709.27 cr. (FY19) and Rs. 38008.12 cr. / Rs. -(16432.58) cr. (FY20). Thus while its revenue marked steady growth, its bottom line declined sharply. According to bank management, extra provisioning of NPAs and other adjustments, the bank has posted dismal performance for FY20. For all these fiscals, its basic EPS (Earnings per Share) stood at Rs. 18.46, Rs. 7.40 and Rs. (56.11). For the said year ends, its NAV (Net Asset Value) was at Rs. 111.82, Rs. 116.14 and Rs. 17.29 respectively. As on 31.03.2020, its total borrowings were Rs. 113790.50 cr. As on the date of filing of RHP for this offer, the bank is involved in litigations/criminal and other proceedings amounting to Rs. 56716.74 cr. (that includes by the bank, against the bank and its group companies).
For the last three fiscals, the bank has (on a consolidated basis) posted an average EPS of Rs. - (22.51) and an average RoNW of - (35.85%). This negative data is attributed to a sharp decline in the bottom line for FY20. During these three fiscals, bank's total assets decreased by CAGR of (9.16%), total deposits decreased at a CAGR of (27.96%), CASA deposits decreased at a CAGR of (38.09%), advances decreased by (8.22%).
The Bank has focused on pro-actively recognizing bad loans as it continues to account for loan slippages in the fiscal year 2020. Additionally, the Bank has decided to increase its coverage ratio on its NPA loans beyond the RBI requirements with a provision coverage ratio on advances at 73.77%.
Since the bank's current position is showing negative earnings as on 31.3.2020, its P/E cannot be arrived at. However, if we consider NAV of Rs. 17.29 as on 31.03.20, this issue is priced at a P/BV of 0.75 and a discount of 49% based on its last traded price (LTP) of Rs. 25.50 (as on 10.07.20). (Based on the upper price band of FPO).
COMPARISION WITH LISTED PEERS:
As per offer documents, YBL has shown IndusInd Bank, RBL Bank, IDFC First and Federal Bank as its listed peers. They are currently trading at a P/Es of around 8.74, 18.94, 00 and 7.15 (as on 10.07.2020).
MERCHANT BANKERS TRACK RECORDS:
The eight BRLMs associated with the offer have handled 25 public issues in the past three fiscals out of which 9 issues closed below the issue price on listing date.
According to BRLMs, many corporate and institutions are keen to participate in this offer.
Yes bank suffered a severe setback in line with general trends of the banking sector in general and due to higher NPA following few defaulting advances in particular. Although its pricing indicates negative P/E due to mega losses for FY20, considering its book value and the current market price, the issue is at a sizeable discount. Once the issue proceeds are received, the bank will be on a fast forward mode. Investors may consider investment with a long term perspective.
Mon, 13 Jul 2020 21:49:00 GMT
If one considers the adjusted book value, the asking price of the FPO is not cheap, given the weak finances of the bank ...
Mon, 13 Jul 2020 04:33:00 GMT
Yes Bank share price ended 13.33 per cent lower at Rs 22.10 apiece, as compared to a 0.27 per cent rise in Sensex. Yes Bank FPO will open on July 15 and close on July 17 ...
Tue, 14 Jul 2020 00:25:00 GMT
Private sector lender Yes Bank will launch its Rs 15,000-crore follow-on public offering (FPO) on July 15. After the exit of co-founder Rana Kapoor, the troubled private lender is now backed by ...
Mon, 13 Jul 2020 09:16:00 GMT
If someone wants to invest for a long-term wealth creation, ‘Bharat Bond ETF, Rossari Biotech, and Yes Bank IPO are preferred choice filtered on the basis of wealth creation/protection of capital.
Mon, 13 Jul 2020 08:45:00 GMT
Yes Bank is at present raising up to Rs 15,000 crore in the largest follow-on public offer in India at Rs 12-13 per share.
Mon, 13 Jul 2020 17:45:00 GMT
The bank’s total advances stood at Rs 1.71 lakh crore and deposits were to the tune of Rs 1.05 lakh crore as on March 31.
Mon, 13 Jul 2020 02:59:00 GMT
The ₹15,000-crore capital-raise from the follow-on public offer (FPO) will take care of the growth requirements of YES Bank for the next two years, its Managing Director and CEO Prashant Kumar said.
Mon, 13 Jul 2020 01:47:00 GMT
Yes Bank has been in news lately for the spurt in its NPAs and deterioration of its financial position. The bank is coming with an FPO to raise additional equity from the public. Further purchase ...
Mon, 13 Jul 2020 23:47:00 GMT
YES Bank's chief executive officer Prashant Kumar on Monday said Rs 15,000 crore capital the lender plans to raise via FPO is the largest ever by any entity and will help the private sector lender ...
Mon, 13 Jul 2020 04:08:00 GMT
Private sector lender Yes Bank on Monday said funds raised from its follow-on public offer (FPO) will take care of its growth requirement for the next two years. Speaking at the press conference held ...
Mon, 13 Jul 2020 05:22:00 GMT
Investors borrowed 95,99,987 shares worth Rs 5.9 crore for an interest rate of around Rs 7 per share. Investors borrowed these shares for a one-month period, with settlement due on August 6.
Mon, 13 Jul 2020 07:48:00 GMT
YES Bank is coming with a further public offer (FPO) of around Rs 15,000 crore to raise additional equity from the public and improve its capital adequacy. The FPO will open on July 15, 2020, and end ...
Yes Bank FPO allotment status is not available at this time. FPO share allotment process takes 6 working days from the issue closing date. Please revisit us to check the latest updates for Yes Bank Ltd FPO allotment status.
Note: Registrar of the Yes Bank FPO is responsible for FPO allotment and refund processing. Please contact the registrar with questions related to IPO Allotment Status Online. To understand the allocation of shares for Yes Bank Ltd FPO, check the Basis of Allotment document.
Sorry, the basis of allotment is not available online for Yes Bank FPO. Yes Bank Ltd FPO finalization of basis of allotment is done within a week time of IPO share bid closing date. The registrar of the IPO i.e. Karvy or Link Intime finalize the Yes Bank FPO basis of allotment status.
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The basis of allotment for Yes Bank FPO is not yet made public by the registrar. We will update it on our website as soon as it is released.
The Yes Bank FPO basis of allotment (published above) tells you how shares are allocated to you in Yes Bank FPO and category wise demand of IPO share.
Visit the Yes Bank FPO allotment status page to check the number of shares allocated to your application.
The Yes Bank FPO opens on Jul 15, 2020 and closes on Jul 17, 2020.
Yes Bank FPO timetable / schedule is as below:
Sorry, Yes Bank FPO DRHP PDF Document is not available at this time.Yes Bank FPO Red Herring Prospectus (RHP) PDF
Yes Bank FPO is a Book Building IPO. The price band for the IPO shares is set between 12 to 12.
Yes Bank FPO will close for subscription at 5 PM on Jul 17, 2020. But most brokers stop accepting application between 1 PM to 3 PM.
The Yes Bank FPO starts on Jul 15, 2020. The issue ends on Jul 17, 2020.
The Yes Bank FPO size is Equity Shares of ₹2 aggregating up to ₹15,000.00 Cr.
Yes Bank Ltd is selling its shares to the public through an Initial Public Offer (IPO). Retail investors can apply online for Yes Bank FPO shares through the banks (using ASBA) or through the broker (using UPI).
Sorry, The number of shares offered in Yes Bank FPO is not available at this time. Please revisit us for latest updates.
The bidding information of Yes Bank FPO is not available at this time.
If you have a demat account, most banks offer the online IPO application. You could also contact your broker to apply in Yes Bank FPO.
Zerodha, the largest stockbroker in India, offers an online IPO application. You can apply for an IPO online with Zerodha by visiting https://zerodha.com/ipo
You could check Yes Bank FPO Grey Market Premium (GMP Rate) by visiting our IPO Grey Market Price (Message Board). Note that there is no official source of GMP Rate as it's a black market.
The Yes Bank FPO allot status will be available online on Jul 22, 2020. Check the Yes Bank FPO Allotment Status here.
The Yes Bank FPO Allotment Status is not available online at this time.
The Yes Bank FPO listing data are not available. The date is published by the exchange a couple of days before IPO shares listing.
Click here to view the Yes Bank FPO Basis of Allotment.
It is hard to say at what price Yes Bank FPO Shares will list. The price varies by the demand and supply of IPO shares on the day of listing.
The Yes Bank FPO shares are proposed to list on Jul 22, 2020 at BSE, NSE. The actual listing date will be announce by the exchange.
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Sorry, we do not provide IPO recommendations. But we share a lot of information about Yes Bank FPO which could help you with questions like Yes Bank FPO buy or not? You should also read Yes Bank FPO Analysis from experts and check the daily subscription status.
It actually depends on many factors. This includes company financials, segment outlook, market situation, issue pricing, the background of promoters, lead managers performance, company strengths, risks and oversubscription. You should read the prospectus document, IPO Analysis from experts and follow the subscriptions.
Yes Bank FPO listing day gains are highly unpredictable as depends on many factors on the day listing. It depends on factors like the demand (IPO oversubscription), the market situation on the day of listing, Issue size etc.
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