Hi guys...This is sri....anyone have idea about YES bank IPO..??? Is it worth to invest? I am planning to invest in it for short term (3 months...)....Is YES-BANK already listed in any of the exachanges....?
1. Yes bank is new to the banking business and does not have any brand value. The success of the bank depends on the brand value it is able to create which is uncertain at this stage for this bank.
2. Yes Bank has posted a Negative EPS for the first year of its operations. This means that the bank is a loss-making bank from sharholders perspective.
3. There are a number of good performing private sector banks in the market generating excellent profits. Why should one apply for a loss making bank IPO, that too at a premium of 350% over the face value?
4. The bank is expected to have a tough competition with the existing well-established private and poublic sector banks and the bank has not disclosed what innovative plans it has to compete with these banks.
I do not think I agree with Sudikuma. Past performance that too of a relatively new bank cannot be an indicator of what's to come. Agree though that it is not attractive from the price perspective. But keep in mind that this bank has a sound management and the banking sector is doing well.