Who can buy FPO shares?

Who can invest in FPO?

Definition: FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base.

Is FPO only for existing shareholders?

While all types of investors can buy shares through FPO, then the right issue is for existing shareholders of the company only. Existing shareholders and non-shareholders have the opportunity to apply when the company that conducted the IPO conducts an FPO to sell more shares.

Is it good to invest in FPO?

An FPO is relatively a safer bet for individual investors and new investors. Investing in an IPO requires more research than FPO. You need to understand the company fundamentals. If you are a long term investor, with a good risk appetite and have faith in the company, you can consider investing in an IPO.

When can we sell FPO shares?

You can sell all the share on one single day on the same day of listing. , Long Term Investing Preferred. Good Day, Yes , FPO of yes bank will have no lock in period.

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Is FPO good or bad?

We could of course be horribly wrong. The arbitrage, and even short term trading metrics, are not in favour. You can’t easily go short, but this stock is likely to be extremely volatile on the downside after the FPO allocations are done.

Why do companies issue FPO?

Dilutive FPO is when the new offer of shares actually increases the number of outstanding shares of the company. The company board issues a new set of shares to be offered to the public. Such an FPO is undertaken by the company to fund expansion activities or pay for debts.

What is the difference between IPO and share?

While many companies choose to do an initial public offering (IPO), in which new shares are created, underwritten, and sold to the public, some companies choose a direct listing, in which no new shares are created and only existing, outstanding shares are sold with no underwriters involved.

Will Yes Bank share grow?

Yes Bank’s share price has nearly halved in the past one year, but analysts don’t recommend investors to ‘buy. ‘ Even at ₹13.55 per share, there’s a chance that the stock is overvalued.

Bank Change in share price from 6 March 2020 to 6 May 2021
Yes Bank -16.1%
ICICI Bank 25.1%
HDFC Bank 23.4%
Axis Bank 8.8%

How FPO affect share price?

The process of FPO impacts share prices in the market. Most of the time, FPO pushes the stock price lower because of the dilution. This means that the proportionate decrease in the central value of each stock.

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Is Yes Bank FPO worth buying?

The Yes Bank FPO at 50% discount to its current market price opens today. … Given the current chaotic state of the bank, should investors subscribe to the FPO offering a hefty discount. While most equity analysts ask investors to stay away, som analysts believe it is a good buy.

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