Trade Nivesh yet investors turned away
Trade Nivesh The former promoter of Yes Bank, in the beginning of the year 2019, called the stock of this bank a 'diamond'. But, by the September quarter, he was forced to sell almost his entire stake in the bank.
Yes Bank was the worst performing stock of Nifty 50 Index in the year 2019. This wiped out 73 per cent of the wealth of investors. Yes Bank's troubles continued even further.
By December, this stock was out of the list of 30 Sensex stocks .. Despite this, the trust of millions of investors remains on this stock. They are investing in this stock.
Aggressive investors are not willing to part with this high profile bank's stock. They believe that the good days of this private bank will return soon. It will be successful in attracting new capital. Yes Bank is constantly trying to raise capital.
On Tuesday, the bank extended the mandatory binding deadline for a potential $ 1.2 billion investor for Canadian businessman and aspiring investor Ervin Singh Braich. In addition, the board is considering a bid to invest $ 50 million from Sitax Holdings and Sitax Investment Group.
For many months, Yes Bank CEO Ravneet Gill has been trying to raise capital. Yes Bank is looking for an investor with a strategic investment of up to $ 2 billion. Yogesh Mehta, founder of Yield Maximizers said that Yes Bank lacks Tier I and Tier II capital.
During a conversation with ET Now, Mehta said, "The first round of capital raising was successful, but there is a dilemma about the second round. Now we are in the third round. If it is successful, the bank will definitely get some relief."
Mehta said, "If the bank gets the funds, it will be a good opportunity for it. After the fourth or fifth round of funding, things will move towards normalcy." Due to these things, the risk of this bank seems quite high, but the returns also appear attractive.
Statistics show that the one-year beta of this private bank is 1.87 per cent, indicating that it will have more volatility than the Nifty 50 index. This bank has recorded a volatility of more than 5 percent during daily business in 85 sessions out of the last 100 sessions.
Deepak Shenoy, founder of Capital Mind, said, "The growth of this bank was only due to rumors or statements from the company management or industry giants. None of them hit the ground. It is quite disappointing, because trust in banking industry is the biggest It is an asset. "
Shenoy said that if you reverse your statements, the consequences can be very serious. According to experts, this stock records fluctuations based on speculation throughout the day. Its brightness is also decreasing in the derivatives market.
The promoters' stake in this bank has almost ended, while by September quarter, the rich and retail investors held close to 30 per cent. At the beginning of 2019, this share was only 16 per cent.
Sudeep Bandopadhyay of Inditered Capital still has faith in this stock. Giving the example of CSB Bank, he said that the situation of this bank of Kerala was also similar to two years ago. Then Toronto's Fairfax came forward to help.
Shares of the country's oldest banks, CSB Bank, were listed on the stock market in recent December. There was a bumper response to its issue. Bandopadhyay said that Yes Bank is in a better position than CSB Bank even in the current circumstances.
He said, "If you are an aggressive investor, you can buy Yes Bank at a price of Rs 40 to 45. Something is going to happen in this bank and it is not good, there are few chances. Fairfax has transformed CSB Bank The IPO was fantastic. It can happen with Yes Bank too. "
Shenoy says that he is not worried about the end of December 31 to raise funds. If this deadline is extended till January, they still have no problem. He warned, "If the bank fails to raise funds, it will lose both trust and business."
Trade Nivesh The former promoter of Yes Bank, in the beginning of the year 2019, called the stock of this bank a 'diamond'. But, by the September quarter, he was forced to sell almost his entire stake in the bank.
Yes Bank was the worst performing stock of Nifty 50 Index in the year 2019. This wiped out 73 per cent of the wealth of investors. Yes Bank's troubles continued even further.
By December, this stock was out of the list of 30 Sensex stocks .. Despite this, the trust of millions of investors remains on this stock. They are investing in this stock.
Aggressive investors are not willing to part with this high profile bank's stock. They believe that the good days of this private bank will return soon. It will be successful in attracting new capital. Yes Bank is constantly trying to raise capital.
On Tuesday, the bank extended the mandatory binding deadline for a potential $ 1.2 billion investor for Canadian businessman and aspiring investor Ervin Singh Braich. In addition, the board is considering a bid to invest $ 50 million from Sitax Holdings and Sitax Investment Group.
For many months, Yes Bank CEO Ravneet Gill has been trying to raise capital. Yes Bank is looking for an investor with a strategic investment of up to $ 2 billion. Yogesh Mehta, founder of Yield Maximizers said that Yes Bank lacks Tier I and Tier II capital.
During a conversation with ET Now, Mehta said, "The first round of capital raising was successful, but there is a dilemma about the second round. Now we are in the third round. If it is successful, the bank will definitely get some relief."
Mehta said, "If the bank gets the funds, it will be a good opportunity for it. After the fourth or fifth round of funding, things will move towards normalcy." Due to these things, the risk of this bank seems quite high, but the returns also appear attractive.
Statistics show that the one-year beta of this private bank is 1.87 per cent, indicating that it will have more volatility than the Nifty 50 index. This bank has recorded a volatility of more than 5 percent during daily business in 85 sessions out of the last 100 sessions.
Deepak Shenoy, founder of Capital Mind, said, "The growth of this bank was only due to rumors or statements from the company management or industry giants. None of them hit the ground. It is quite disappointing, because trust in banking industry is the biggest It is an asset. "
Shenoy said that if you reverse your statements, the consequences can be very serious. According to experts, this stock records fluctuations based on speculation throughout the day. Its brightness is also decreasing in the derivatives market.
The promoters' stake in this bank has almost ended, while by September quarter, the rich and retail investors held close to 30 per cent. At the beginning of 2019, this share was only 16 per cent.
Sudeep Bandopadhyay of Inditered Capital still has faith in this stock. Giving the example of CSB Bank, he said that the situation of this bank of Kerala was also similar to two years ago. Then Toronto's Fairfax came forward to help.
Shares of the country's oldest banks, CSB Bank, were listed on the stock market in recent December. There was a bumper response to its issue. Bandopadhyay said that Yes Bank is in a better position than CSB Bank even in the current circumstances.
He said, "If you are an aggressive investor, you can buy Yes Bank at a price of Rs 40 to 45. Something is going to happen in this bank and it is not good, there are few chances. Fairfax has transformed CSB Bank The IPO was fantastic. It can happen with Yes Bank too. "
Shenoy says that he is not worried about the end of December 31 to raise funds. If this deadline is extended till January, they still have no problem. He warned, "If the bank fails to raise funds, it will lose both trust and business."
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