Yes Bank opens its FPOs at 50% discount in order to expand its equity base. It is the 6th largest private bank. It’s rescue plan has been approved by the Government backed by SBI.
After it opens FPOs investors are in dilemma whether to invest or not.
According to many experts investors who are looking for immediate gains are not advised to invest in these as many will purchase and sell hoping for the same, hence they might not gain expected profit. They have to wait for atleast three years.
Conservative investors to avoid FPO, advised by Vikas Vardhan, Associate Manager – Equity Research Value Research. According to him if one look at the culture of Yes Bank, the nature of Bank is aggressive lending,due to which it has come in troubles. It takes time to change the nature of bank, hence not advised for conservative investors.
Cheap prices can get many uncertainities, thus Nirmal Bang Institutional Equities has told to avoid FPOs.
