Yes Bank IPO is attractive, says Shenoy

Within the current batch of IPOs that are hitting the market, the only attractive IPO is Yes Bank, says Sandeep Shenoy of Pioneer Intermediaries.

Yes Bank is entering the capital market with its IPO on June 15, 2005. It is offering 70 million equity shares of Rs 10 each for cash, through the 100% book-building route.

The price band for the issue is Rs 38 to Rs 45. The issue will close on June 21, 2005, according to the bank release.
Sandeep Shenoy of Pioneer Intermediaries told CNBC-TV18, "If you view Yes Bank from a pricing angle then there is not much on the table for a common investor. But if you look at the skills of the management and the parentage and if you remain invested for more than one year then at the price of 40-42, you will get at least 30-40% growth over the next one to two years, yearly basis.”

He also said, “In my opinion within the current batch of IPOs that are hitting the market, the only attractive IPO is Yes Bank and not anything else.”

The issue is aimed at augmenting Yes Bank’s long term capital requirements to implement it’s growth plans, which include establishing a robust retail branch infrastructure, intensifying lending opportunities across corporate and business banking segments as well as further strengthening the banks capital base, in the process diversifying it’s source of funds.

The book-running lead managers for the issue are DSP Merrill Lynch and Enam Financial Consultants.