Investors have been warned to steer clear of the stock, given the bank’s poor health. Yet, traders are still betting on it.
In July, when Yes Bank Ltd announced a follow-on public offer to raise Rs 15,000 crore in an effort to shore up its mandatory capital requirements, several research agencies advised investors to avoid the issue like the plague.
Though Kotak Mahindra Capital Co. was the lead manager to the issue, its research arm Kotak Securities Ltd did not rate the offer. Nirmal Bang Securities Pvt. Ltd actually asked investors to steer clear of the offer, while Macquarie Group Ltd indicated that the FPO would affect the Yes Bank stock adversely, estimating that its target price would dip to Rs 8. …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai