Street signs: YES Bank SLB activity spurts, Rossari Biotech stock, and more

Market players said savvy traders are shorting YES Bank shares, given the steep discount between the current and the FPO prices

stocks, india inc, shares, company, firms, BSE, exchange, earnings, results, profit, loss, dividend payout, tax — Encouraging growth in the past three years and low debt are key positives for the stock, say market players. Illustration: Ajay mohanty

Mayank Patwardhan Sundar Sethuraman Jash Kriplani

2 min read Last Updated : Jul 12 2020 | 7:19 PM IST

YES Bank SLB activity spurts

YES Bank shares are in demand under the stock lending and borrowing (SLB) scheme ahead of its Rs 15,000-crore follow-on public offering (FPO). On Friday, nearly 9.3 million shares changed hands at Rs 7.7 apiece. Market players said savvy traders are shorting YES Bank shares, given the steep discount between the current and the FPO prices. Shares of YES Bank on Friday ended at Rs 25.5, nearly double the FPO price. “The stock price will adjust lower, given the huge equity dilution in the FPO. As the stock has been removed from the derivatives segment, investors are using SLB for shorting,” said a market expert.

Mayank Patwardhan

Rossari commands 30% premium

Shares of Rossari Biotech are commanding a premium of up to 30 per cent in the grey market, said people in the know. Investors are willing to pay between Rs 100 and Rs 130 per share, over the IPO price range of Rs 423-425. Encouraging growth in the past three years and low debt are key positives for the stock, say market players. Also, the company’s business has been less impacted by the Covid-19 pandemic. Rossari IPO is hitting the market after a gap of four months. Experts say, if the issue does well, it will help improve primary market sentiment. The specialty chemicals company’s Rs 500-crore IPO closes on Wednesday.

Sundar Sethuraman

Foreign funds continue to see traction

Schemes oriented towards the overseas equity markets have continued to see steady investor flows, even as those aligned to the domestic markets have seen spike in redemptions. In June, fund-of-funds overseas schemes saw net inflow of Rs 198 crore, which is the highest since February 2014. In the current calendar year, these schemes have garnered over Rs 810 crore of flows. "Recently, home bias of investors has waned a bit. Savvy investors are warming up to the idea of international funds to take exposure to global leaders and businesses not listed on domestic bourses," said an advisor.

Jash Kriplani