Shares of Fino Payment Bank Make Debut On Bourses

Mumbai: The shares of Fino payments bank on Friday made a debut on the stock exchanges.

The stocks were listed at price of Rs 544.35 apiece but in the morning itself, the investors had to suffer a loss of about Rs 33. Fino Bank shares were trading at Rs 530 per share on BSE till 12:14 pm which is about 8.15 percent less than the issue price.

The price range for the Rs 1,200-crore IPO of Fino Payments Bank was in the range of Rs 560-577 per share.

The company's IPO that opened on October 29 and closed on November 2 included the issue of fresh equity shares worth Rs 300 crore, while the offer for sale (OFS) of 15,602,999 equity shares was made by promoter Fino PayTech.

The proceeds from the IPO are to be used to increase the Tier-1 capital base of the bank.

According to a report in Mint, Jyoti Rai of Angel One asserted that despite strong growth, we believe valuations have not justified the premium.

On the other hand, Vikas Jain, an expert with Reliance Securities, said that the current valuation does not leave much for medium-term investors.

"95% of a bank's income depends on fees and commissions. The growth of the company depends on the potential of digital wallets in India,'' he added

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