where to invest: Rossari Biotech IPO, Bharat Bond ETF & Yes Bank FPO?
Between Rossari Biotech, Yes Bank FPO, and Bharat Bond ETF, if we take a long-term view and moderate to high-risk profile, Rossari the most, given that it ticks the right boxes when it comes to sector and growth profile. At the offer price, Rossari would be valued at a premium relative to some of its larger peers (P/E of around 36) like Vinati, Atul, and Fine Organics. This valuation could be justified given its higher revenue and net income CAGR numbers.
While Yes Bank is now majority-owned by SBI and its brethren, even with around 50 percent dilution happening at FPO price, new investors should question the upcoming problems that a bank could be subjected to in the near future in terms of NPAs.
With Bharat Bond ETF, while the principal is largely protected since the debt has quasi-sovereign characteristics, the returns are capped given that this is ultimately a bond instrument.