In the widespread market-economy like ours, business ventures are defined by their sustenance. Any dependable business return depends on a variety of factors. This makes it all the more necessary to understand the basic capacity of any business and its general growth in terms of market-future. Indian markets form a hub of investments and there are various options available for the investors to grow their capital base.
Every organization needs a stable level of profitability. For this purpose, fund-raising is a dependable method through which money can be raised in order to grow the business or clearing the obligations. An FPO i.e. Follow-On Public Offer is one such channel through which a financial organization can raise assets from investors. An FPO or Follow-On Public Offer is one of such methods through which companies issue shares for raising enough capital to meet their specific needs and requirements. This issuance is done by a company that is listed on the Stock Exchange and the shares on sale are additional shares after an Initial Public Offering i.e. IPO. Assets are raised by offering channels to the investors at lower and limited rates. This means that the investors get an opportunity to purchase new and extra offers at costs lower than the current market price.
YES Bank Follow-On Public Offer, July 2020
After the 2019 debacle where YES Bank had to face financial collapse and share-investment was pumped in by SBI by buying around 49% stake of the bank, YES Bank has announced an FPO from 15th July, 2020. The purpose of this FPO is to raise capital reserves and fiscal corpus through the selling of shares and to reduce the amount of debt. Moreover, this FPO has been widely viewed by analysts as a platform for increasing bank solvency. As the volume of bad debt on YES Bank had grown, there was a growing push towards public offering in order to raise the capital adequacy ratio of the bank and this FPO is a major step towards that.
Keeping in view the fact that a majority of financial institutions and establishments in India are aiming to become completely debt-free in the coming years, with a prime focus on GDP contribution, the decision by YES Bank has come at an apt time for the investors.
The details of YES Bank FPO, 2020
As per the detailed announcement, the starting date of the FPO is July 15th and the closing date is July 17th, 2020. The face value of each equity share has been priced at Rs.2 per share, with the Initial Public Offer (IPO) size being Rs.12 to Rs.13 per equity share. Keeping in view the benefits for the employees who happen to be the shareholders, YES Bank has announced a discount in the share price for employees to the tune of Rs.1 per share for each employee. Moreover, the issue size has been kept at Rs.2 per share with the aggregate amount being Rs.15000 Crore.
As per the announcement made by YES Bank, the market lot of the FPO issuance is 1000 shares and the minimum order quantity is also 1000 shares. The share issuance, sale and purchase are listed at BSE and NSE. The important dates have been duly announced, as stated. The date for the finalization of the basis for share allotment is July 22, 2020. It has been decided that the date for initiation of refunds is July 23, 2020 and the date for credit of the purchased shares to demat accounts will be July 24th, 2020. Furthermore, the date for listing of shares under IPO is July 27th, 2020.
It is important to keep track of the dates related to the FPO. Prospective investors can apply for the YES Bank FPO through the online mode using UPI or ASBA (Application Supported by Blocked Amounts) payment channels. The application for UPI is offered by the brokerage firms who offer services other than banking and ASBA payment method is available on the net banking platform of the bank account.
The important decision of investing in the YES Bank FPO is something which demands a clear-cut insight into your financial portfolio. There are various needs and requirements that need to be analysed in view of this FPO and as such, it is extremely important to consult the leading brokerage firms and consultants, which can provide coherent inputs. This is exactly where Tradebulls fits the bills as the range of services offered by Tradebulls is extensive. Tradebulls has already been recognized and awarded by World Brand Congress for Brand Excellence in BFSI (Banking, Financial Services and Insurance). Moreover, as a recipient of the award for Excellence in Financial Services by Indian Achievers’, Tradebulls Securities is your one-stop shop solution for your financial decisions.