Yes Bank IPO likely on May 9

"If everything goes well, then Yes Bank IPO will open by May 9," Yes Bank CEO Rana Kapoor said in New Delhi.

The bank has already filed a red herring prospectus with SEBI for its offer through the book building process.

Though the bank is yet to announce a price band for the offer, according to market sources it could be in the range of Rs 30-42.

The bank has appointed DSP Merrill Lynch and Enam Financial Services as the lead managers of the IPO.

Yes bank is also planning to raise about Rs 100 crore (Rs 1 billion) through tier II capital by September, Kapoor said.

Stake of two promoters in the bank- Rana Kapoor and Ashok Kapur- will come down from 52 per cent to about 40 per cent post-offer.

Rabo Bank of the Netherlands has expressed its intention to retain 20 per cent stake it currently has in the bank.

Private equity investor CVC's holding will come down to 7.4 per cent from 10 per cent, while the other two investors--AIF Capital and Chrys capital-- will hold 6 per cent each against the present 7.5 per cent.

The bank is raising up to Rs 300-400 crore of capital to fund to its business expansion in the next two years and increase lending, besides creating infrastructure for retail and business banking.

The bank, which currently has 4 branches, has received license from RBI to open 16 branches by September. It has also set a target to have a total of 30 branches by March 2006.