Reconstruction Scheme 2020
2020
YES BANK LIMITED
Sell-side advisory in first of its kind reconstruction scheme for a bank in India under Section 45 of Banking Regulation Act
Deal highlights
- Only transaction in India where-in a scheme of reconstruction has been applied for a bank under Section 45 of Banking Regulation Act
- INR 100,000 Mn was raised from various investors in record time, keeping in min the interest of depositors as well as stakeholders in Indian Banking System
- The Equity Issue Price was INR 10 per Share
- Key investors include State Bank of India, ICICI Bank, HDFC, Axis Bank, Kotak Bank, IDFC First Bank, Bandhan Bank and Federal Bank
- The said capitalization under the Reconstruction Scheme enabled YES BANK to maintain the regulatory capital requirements and resulted in lifting of moratorium
SBICAPS value add
- SBICAPS assisted YES BANK in formulating inputs on the draft Reconstruction Scheme.
- SBICAPS reached out to various potential investors and ensured smooth communication along with flow of information to complete the deal in a short timeframe.
- SBICAPS stepped up the engagement effort by bringing together various stakeholders and maintaining efficient coordination among all.
SCHEME DETAILS
| Equity Issue Size | INR 1,00,000 Mn | |
| Equity Issue Price | INR 10 per Share | |
| No of Shares Issued | 10,000 Mn |
| Issuance & Allotment Details | Shares (Mn) | Amount (INR Mn) |
| SBI | 6050 | 60,500 |
| ICICI Bank | 1,000 | 10,000 |
| HDFC | 1000 | 10,000 |
| Axis Bank | 600 | 6,000 |
| Kotak Bank | 500 | 5,000 |
| Bandhan Bank | 300 | 3,000 |
| Federal Bank | 300 | 3,000 |
| IDFC First Bank | 250 | 2,500 |
| Key Terms | 75% of shares lock-in for 3 years from March 13, 2020 |
