The Government has notified reconstruction scheme for Yes Bank. According to the government’s notification, Yes Bank's authorised share capital will stand altered to Rs 6,200 crore from Rs 1,100 crore earlier. The number of total equity shares will stand altered to 3,000 crore of Rs 2 each. Authorised preference share capital shall continue to be Rs 200 crore.

One important provision in the scheme is notable in Clause 3 (8) which says that there shall be a lock-in period of three years from the commencement of this Scheme to the extent of 75 percent in respect of: 

• Shares held by existing shareholders on the date of such commencement 
• Shares allotted to the investors under this Scheme

The lock-in period shall not apply to any shareholder holding less than 100 shares

While SBI is required to maintain at least 26 percent stake in Yes Bank for a period of three years, the other investors will see 75 percent of their investment locked in for a period of three years.

This is probably the first time that such a restriction is placed upon retail shareholders as well

It may be interpreted from above that the restriction will apply only to the extent of 75% of existing shareholding meaning thereby that such restriction would not apply to remaining 25% of shareholding as well as to shares bought after the scheme

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The IPO of SBI cards has been oversubcribed by a staggering 56 times in the QIB category. 

The IPO closes for subscription tomorrow. The subscription has exceeded 15 times on an overall basis with the Retail and Shareholder quota having subscribed close to 2 times

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The company is engaged in manufacturing of polymer pipes and fittings. The company produces four types of polymer pipes including CPVC, UPVC, HDPE, PPR and three different polymer fitting types CPVC, PPR, and UPVC. It is operating in the polymer pipe segment under two brand names; which are Trubore and Prince Piping Systems. The company has a corporate office in Mumbai and a strong presence across North, South and West India

The IPO was subscribed by 0.68 times in QIB, 0.06 times in HNI and 1.06 times in Retail category

Is it worth to apply for Prince Pipes IPO? Here are some reviews:

“It has healthy return ratios with average RoE of 22 per cent and RoCE of 20 per cent for the same period. Assuming revenue growth of 13 per cent CAGR through FY19-21E, the company is valued at 14 times of FY21E earnings, which appears to be justified considering its business model, steady growth and healthy return ratios. Hence, we recommend subscribe to the issue,” Reliance Securities.

Equirus Securities: Subscribe
“Construction ban in certain areas in North India will impact near-term growth. Post anti-dumping duty on CPVC resin from China/Korea, Prince was forced to raise CPVC price higher than others and this will impact growth/profitability,” it said. However, the brokerage said that there is a chance of “one-time valuation jump to IPO investors.”

“With superior product mix, established brand name, strong distribution network, and adding capacities, we believe Prince Pipes is well placed to capitalize on domestic opportunities. At the upper price band of Rs178, the stock trades at 19.22 times its FY19 EPS of Rs 9.26,” it said

Ventura Securities: Subscribe for listing gains
Ventura Securities expects revenue, Ebitda and PAT of the company to grow at a CAGR of 5 per cent, 14 per cent and 18 per cent, respectively. For FY21, the stock is available at the offer price of 177-178 at 16 times on a fully diluted basis, this brokerage estimated.

BP Wealth: Do not subscribe

"Taking into account its debt position and the increased competitiveness of the market it operates in, the stock does not look attractive. We give ‘Avoid’ rating for the IPO,” it said.