In the new week commencing today, July 13, investors have 3 more investment options along with more options. Investors can expect good returns by investing in Rossari Biotech IPO, YES Bank FPO and Bharat Bond ETF. Rossari Biotech IPO, a specialty chemical making company, will open an IPO of about 500 crore from July 13. The price band of this issue has been fixed at Rs 423-425 per share. The IPO issue will close on July 15.
The second phase of Bharat Bond Exchange Trade Fund (ETF) will be open for bidding from 14 July to 17 July. It includes 2 new ETFs which will mature in 2025 and 2031. Bharat Bond ETF will be managed by Edelweiss AMC. The base size of this issue is Rs 3000 crore with a green shoe option of Rs 11,000 crore.
Now we come to the third investment option. Yes Bank’s capital raising committee has fixed the floor price of the bank’s FPO at Rs 12 per equity share and the cap price at Rs 13 per share on July 10. Yes Bank’s FPO will be open from 15 July to 17 July.
These three investment options look very attractive but it is for different investors and they cannot be kept in the same category. If one wants to invest from a long-term perspective, then Bharat Bond ETF, Rosari Biotech IPO and YES Bank FPO are better in terms of wealth creation and capital security. There may be investment options.
Ajit Mishra of Angel Broking told Moneycontrol that given the current market conditions, investors are of the view that they should invest in India bond ETFs from a long perspective. The reason for this is that we can estimate its returns and the Bharat Bond issued earlier gave good annual returns in the range of 14 to 18 per cent.
Apart from this, the credit rating of this bond is also very good and it can prove to be a very good instrument for portfolio diversification. He further said that although Rosari Biotech has a strong product portfolio and the company is well diversified, the valuation of the company looks quite expensive. Our investors are advised to wait for the conditions to clear up, only then think of placing bets on Rosari Biotech.
Talking on Yes Bank’s FPO, Ajit Mishra said that Yes Bank’s FPO will give its current shareholders the opportunity to reduce their holdings. However the past ghost will still dominate this stock. Given this, investment in it is not advisable.
Siddharth Panjwani of Pickright Technologies says that he likes Rosary Biotech with a long-term perspective and medium to high risk profile between Rosari Biotech, Yes Bank and Bharat Bond ETF. If we look at the sector and growth prospects, then Rosari seems to be a better claim. He says that keeping in mind the higher revenue and annual revenue figures of the company, its valuation does not appear expensive.
Giving his opinion on Yes Bank, he said that Yes Bank will now have majority stake in SBI and consortium. Despite this, new investors may face problems in the form of NPAs in the near future. On the Bharat Bond ETF, Siddharth Panjwani says that Bharat Bond is ultimately a bond instrument which will be limited to a large extent.
Nirali Shah of Samco Securities says that these three investment options cater to different types of investors. These cannot be compared among themselves, but if an investor wants to invest in equity with less risk from a long-term perspective, then Rossari Biotech would be a good investment option. Its management is much better and its fundamentals are also very strong.
Expressing his opinion on Yes Bank’s FPO, Nirali Shah said that it is suitable for investors looking for large returns with high risk. He further said that if an investor wants to diversify his portfolio with debt instruments then Bharat Bond ETF would be a better option.
Vijay Kuppa of Orowealth says that these three investment options are for different types of investors. There is an opportunity for both equity and debt investment, but Vijay Kuppa prefers Bharat Bond ETF among these three. The reasons for this are-
a) Bharat Bond ETF consists of bonds of PSU companies which are backed by the government. Due to which the investment made in it is quite safe.
b) It provides capital protection and is a good regular income tool for an investor who wants to invest from a long-term perspective.
c) Given the falling interest rates, this bond is giving normal returns. If Savarin Guarantee and the possibility of further decline in interest rates are taken into account, further better returns on bonds are expected.
(Disclaimer: Ideas and Investment Advice on Moneycontrol.com Investment experts have their own personal views and opinions. Moneycontrol advises users to consult a certified expert before making any investment decision.