It has been almost 4 months since Fino Payments Bank got listed on the stock market. Although its parent Fino PayTech is not yet listed in the market. An unlisted market dealer said the stock of Fino Petek has been one of the worst performing stocks in the gray market in the last four months and has lost nearly 53 per cent during this period. The dealer said that the shares of Fino PayTech are currently trading around Rs 200 in the unlisted market.
Fino Payments Bank was listed on the stock market in November 2021. Meanwhile, shares of Fino Petek touched an all-time high in the unlisted market and was trading in the range of Rs 400-425. However, since then both the companies – the parent company in the unlisted market and the subsidiary company in the listed market – have seen a major decline.
Analysts say that a major reason behind the fall in the shares of Fino Petec in the unlisted market is the fall in the shares of new-age tech companies across the world including India. Apart from this, the entry of Fino Payments Bank was done with a discount in the stock market and its effect has also been seen on this stock.
Shares of Fino Payments Bank were listed on November 12 at a discount of 5 per cent from its issue price of Rs 577 and have since lost more than 51 per cent. It is the first profit making payments bank and had raised Rs 1,200 crore through its IPO.
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Moneycontrol had earlier reported on March 3, quoting the managing director and CEO, that Fino Payments Bank would initiate a reverse merger with the holding company by June. Fino Payments Bank was launched in 2017 and will complete five years of business on June 30. As of December 31, Fino Petec holds a 75% stake in its subsidiary, while the rest is held by public shareholders.
Manan Doshi, Co-Founder, unlistedarena.com said, “The management of the company is looking for a reverse merger and hence the performance of both the stocks is closely related. The IPO of a big fintech company close to Diwali last year was very bad. Since the listing was seen, the environment in the fintech industry has deteriorated. Market sentiment has changed, due to which unlisted fintech stocks have also declined.
Earlier, the central bank had allowed Equitas Small Finance Bank and Ujjivan Small Finance Bank to do reverse merger with their holding companies.
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