(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Una Galani
HONG KONG, Sept 9 (Reuters Breakingviews) - Investors are
keen on the country's private sector lenders. But Yes Bank has
been forced to shelve a $1 bln deal. It was pushy on price and
careless in execution, talking up the issue on TV and leaving it
in the market too long. It's a masterclass in how not to raise
Full view will be published shortly.
- India's Yes Bank shelved a 66 billion rupee ($1 billion)
open offer of shares to institutions on Sept. 8, citing "extreme
volatility" and "misinterpretation" of placing guidelines.
- Orders for the placing opened after the close of trading
on Sept. 7 and remained open at the start of trading on the
following day. The original term sheet indicated the book would
provisionally close by 8 a.m. on the second day, IFR, a Thomson
Reuters publication reported. Yes Bank said stock market
regulations had required it to keep the book open.
- The bank had planned to sell shares at between 1,350 and
1,410 rupees per share. Those prices are equivalent to a
discount of 3.7 percent and a premium of 0.6 percent to the
pre-deal close. The floor price is determined by a regulated
- On Sept. 7, Rana Kapoor, the bank's founder, managing
director and chief executive, told CNBC-TV18 the bank was
targeting the upper end of the range at a price of 1,400 rupees
to 1,410 rupees. The book was open at the time he made his
- Eleven banks advised Yes Bank, including Goldman Sachs,
Motilal Oswal Investment Advisors, and CLSA India.
- Yes Bank shares were trading at 1,310 rupees on the
afternoon of Sept. 9. They have fallen 7 percent since the close
on Sept. 7.
- For previous columns by the author, Reuters customers can
(On Twitter twitter.com/ugalani Editing by Peter Thal
Larsen and Katrina Hamlin)