YES Bank FPO: Don't judge it on the basis of price discount alone

YES Bank’s shares tumbled over 13 per cent on Monday upon the lender’s Friday announcement of a Rs 12-13 per share price band for its Rs 15,000-crore follow-on public offer (FPO). The price for the FPO, which opens on July 15 and closes on July 17, indicates a hefty 41-46 per cent discount over its current price of Rs 22.10.  Though the discount suggests some potential short-term gains, concerns over YES Bank’s asset quality — which may worsen due to Covid-19-triggered disruptions — offer little comfort, say analysts. According to Deepak Jas.....

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel
Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.