Fino Payments tepid listing

Fino Payments Bank, a wholly-owned subsidiary of Fino Paytech got listed today; after the blockbuster listing of Nykaa, this one got listed at a discount.

The stock listed at Rs.548 v/s issue price of Rs.577 per share on the BSE.

The Rs.1200.29 crore initial public offering (IPO) was subscribed 2.03 times. The retail investors’ portion of this public issue was oversubscribed by 5.92 times. The demand from non-institutional investors, which includes companies as well as high net-worth individuals (HNI), was low. The portion reserved for them was subscribed by just 21%.

In our IPO Analysis, we had concluded, “Payments bank, with lending restrictions, are perceived less attractive and most aspire for small finance bank licence, and ultimately a universal private bank. Parent Fino PayTech may eventually reverse merge into the company, after June 2022 deadline expires. The IPO is clubbed near other mega consumer brands such as Nykaa, Policy Bazaar, PayTM, which may limit investor interest.” We had advised our members to give this IPO a miss.