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New Delhi: The Rs 1,200 crore IPO of Fino Payments Bank, promoted by Fino Paytech, show slow interest from investors as it received only 87 per cent subscription on Day 2 of the bidding process.
As per the data provided by National Stock Exchange (NSE), investors made bids for 99,90,600 equity shares as of 5:00 pm, against the total issue size of 1,14,64,664 equity shares.
Since the IPO failed to attract rich investors or institutional bidders, there is no activity in the shares of the company in the grey market. The selling pressure from the secondary markets is also weighing on the sentiments of primary markets. Heavy FII selling is keeping investors at bay.
The issue also garnered mixed responses from brokerages as they weighed the company's asset-light model and long-term growth prospects against its high valuations, which they see as a key risk for the issue.
Considering the TTM as of June 2021, adjusted BVPS of Rs 54.52 on the post-issue basis, the company is going to list at a Price to book value P/B of 10.58, with a market cap of more than Rs 4,8015 crore, said Marwadi Shares and Finance.
"The company has an asset-light and scalable business model, with operational experience and expertise. It has a unique DTP framework that enables it to serve the target market efficiently," said the brokerage, giving it a 'subscribe' rating.
The three-day stake sale of Fino Payments Bank will run till Tuesday, November 2. The fintech lender, which has no comparable listed peer, turned profitable in the fourth quarter of FY20 and has been consistent since.
The payments bank is eyeing to raise Rs 300 crore via the sale of fresh equity shares, whereas its promoter Fino Paytech will offload 1,56,02,999 equity shares worth Rs 900.29 crore. The price band is fixed in the range of Rs Rs 560-577 per share.
The company has appointed Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory and Securities (India) to manage the issue.
As per the data provided by National Stock Exchange (NSE), investors made bids for 99,90,600 equity shares as of 5:00 pm, against the total issue size of 1,14,64,664 equity shares.
Since the IPO failed to attract rich investors or institutional bidders, there is no activity in the shares of the company in the grey market. The selling pressure from the secondary markets is also weighing on the sentiments of primary markets. Heavy FII selling is keeping investors at bay.
The issue also garnered mixed responses from brokerages as they weighed the company's asset-light model and long-term growth prospects against its high valuations, which they see as a key risk for the issue.
Considering the TTM as of June 2021, adjusted BVPS of Rs 54.52 on the post-issue basis, the company is going to list at a Price to book value P/B of 10.58, with a market cap of more than Rs 4,8015 crore, said Marwadi Shares and Finance.
"The company has an asset-light and scalable business model, with operational experience and expertise. It has a unique DTP framework that enables it to serve the target market efficiently," said the brokerage, giving it a 'subscribe' rating.
The three-day stake sale of Fino Payments Bank will run till Tuesday, November 2. The fintech lender, which has no comparable listed peer, turned profitable in the fourth quarter of FY20 and has been consistent since.
The payments bank is eyeing to raise Rs 300 crore via the sale of fresh equity shares, whereas its promoter Fino Paytech will offload 1,56,02,999 equity shares worth Rs 900.29 crore. The price band is fixed in the range of Rs Rs 560-577 per share.
The company has appointed Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory and Securities (India) to manage the issue.
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