*YES BANK FPO’s FAQ*
*Q1) Is there a lock-in for the ones who are allotted Yes Bank’s FPO shares ?*
No, There is no lock-in. If allotted, One can sell any quantity at anytime post listing.
*Q2) What is the price at which one should apply, Rs 12 or Rs 13 ?*
For those who wish to apply, one shall apply at higher price band of Rs 13/share.
*Q3) What is the minimum and maximum no. of shares to be applied for retail investors ?*
Minimum no of shares is 1000 (Rs 13,000 at Rs 13) while maximum no. of shares that can be applied is 15,000 (Rs 1,95,000 at Rs 13).
*Q4) Dates of FPO ?*
Issue opens on 15th July and ends on 17th July.
*Q5) Short term and Medium Term View.?*
Yes Bank’s FPO is coming at a price band of Rs 12-13/share which is a huge discount to current stock price. This will cause huge dilution to ABV & EPS. Yes Bank’s ABV post the FPO dilution comes to Rs 11.7/share on TTM basis and a market cap of ~Rs 50,000 cr at stock price of Rs 21/share.
*Short Term view* – One can apply for FPO, *strictly only from listing gains perspective. ONE SHALL TAKE THE LISTING GAINS AND EXIT AT THE EARLIEST.* Expect stock to trade at ~16/share.
*Medium Term view – Should AVOID holding on to shares post listing.* There are several other better options available. Majority of banks trade arnd 1x TTM P/ABV with only strong banks like HDFC Bank, Kotak, ICICI commanding higher multiples. Yes bank’s valuation comes to 1.8x P/ABV at price of Rs 21 which is on higher side than peers. To compare - IDFC First Bank is trading at 1x TTM P/ABV, Federal Bank at 0.8x, RBL Bank at 0.9x, Indusind at 1.1x and Axis Bank at 1.5x. Thus, Yes Bank's valuation is much higher than peers who have much more stable deposit franchise and less asset quality risk.
*Q6) Should existing investors sell their shares and apply for FPO ?*
One can do that but it is not necessary that everyone will be allotted shares and also get the desired quantity.
*Q7) When will the FPO shares get listed ?*
Shares are likely to be listed on 27th July.
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