Fino Payments Bank's Shares List At 5.6% Discount From Issue Price

Weak Market Debut For Fino Payments Bank, Shares List At INR 544, With 5.6% Discount

SUMMARY

Its IPO was subscribed 2.03 times from October 29 - November 2

The issue price band was INR 560 – INR 577

The payments bank began its operations in June 2017

After a largely moderate response to its IPO, Fino Payments Bank witnessed a lukewarm interest on market debut. The payments bank’s shares got listed at around a 5% discount compared to the issue price.

On the National Stock Exchange, its shares were listed at INR 544.35 per share, lower by 5.65% from the issue price of INR 577.

Similarly, on the BSE, its shares got listed with a 5.02% discount at INR 548.

Around 10.30 a.m., its shares on the BSE were trading at INR 548.70, higher by 0.13% than the listing price of INR 544.35, but 4.90 lower than its issue price.

On the NSE, they were trading 0.52% higher than the listing price at INR 547.20 a share.

The initial public offering of (IPO) of the Mumbai-based fintech startup also witnessed a slow initial response and gathered pace only by the end of the offer. The offer opened on October 29 and closed on November 2.

After a largely lukewarm response from investors across categories other than the retail investors for most of the three-day offer, finally was able to sail through and was subscribed 2.03 times.

The IPO opened at a price band of INR 560 – INR 577 per share in a bid to raise up to INR 1,200.3 Cr.

Retail investors subscribed to the allocated portion 5.92 times, while the Qualified Institutional Buyers (QIBs) subscribed to the earmarked shares by 1.65 times.

On October 28, Fino Payments Bank raised INR 538.78 Cr from 29 anchor investors, including Invesco, Pinebridge Global Funds and HSBC

The payments bank began its operations in June 2017, after its parent Fino Paytech received a nod from RBI for setting up a payments bank. It competes with Paytm Payments Bank, Airtel Payments Bank, and Jio Payments Bank.

Fino Payments Bank turned profitable in FY21, reporting INR 20.4 Cr in profits and a total income of INR 791 Cr, up 14% YoY. However, the company could not rein in its expenses in FY21. Its total expenditure increased by 6.5% to INR 770 Cr compared to INR 723 Cr in FY20 and INR 433.5 Cr in FY19.