- by Stockry
- 19th Jul 2020
The success of these two public offerings reflects a positive indication towards future performance?
The initial public offering by Rossari Biotech and follow-on public offering (FPO) by Yes Bank got satisfactory response by the investors.
Yes bank has issued FPO of Rs 15000 crore with an agreement of underwriting with SBI Capitals worth Rs 3000 crore. However the amazing fact is that about 95 percent of the total issue was subscribed on last day of the subscription July 17, 2020. The FPO was issued with a fixed price band Rs 12-13 per share.
The case of Rossari Biotech must be considered as a robust public issue as it has been subscribed more than 79 times of the total issue. The company issued the IPO worth Rs 496 crore with a price band of 423-425 per share.
Despite the enthusiastic performance of these public offerings, experts are not so much positively concerned with the future performance and valuation there stocks. In case of Yes Bank the larger portion of the issue was subscribed by the institutional investors shows that the retail investors were not so much positive about the FPO. In case of the Rossari Biotech the performance of textile segment of the company is under doubt as there can be seen critical demand situation in near future.
Thus, the success of these public offerings does not ensure the positive performance and sentiment towards the company as well as market. There must a robust response from each types of the investors and the condition of economy will determine the performance of these companies in near future.
For More Amazing Updates
Follow us on Instagram – https://www.instagram.com/stocktryofficial/