Fino Payments Bank shares extend decline as anchor investors lock-in period ends; stock down 35% from 52-week high

Extending decline for the fifth straight session, the shares of Fino Payments Bank slipped almost 4 per cent to hit a day’s low level of Rs 377.1 per share on the BSE intraday as the anchor investors 30-day lock-in period ending on Thursday, (December 9, 2021). 

The stock has corrected over 35 per cent from its 52-week high made during the listing on November 12, 2021. The counter made tepid listing at around 6 per cent discount to Rs 540 per share on the BSE as compared to Rs 577 per share issue price at the upper end.  

At 03:08 pm, the stock is trading near 52-week level at Rs 382.9 per share, down 2.5 per cent on the BSE. It had hit a 52-week low of Rs 366.45 a share on the BSE on November 22, 2021. 

The majority of analysts, including Zee Business Managing Editor had suggested to invest in the stock with a long-term view.  

Fino Payments Bank is a fully-owned subsidiary of Fino Paytech. It had fixed the price band for the issue at Rs 560-577 per share ahead of initial public launch, which was subscribed by over 2 times during the three-day period between October 29 to November 2, 2021. 

Fino Payments Bank, a digital-backed lender, issue comprises fresh equity shares worth Rs 300 crore and an offer for sale (OFS) of 15,602,999 equity shares by promoter Fino Paytech.   

Edelweiss Alternative Research ran a screen wherein the anchor allocation is 10 per cent over outstanding shares. And, it filtered out four stocks Fino Payments (11.2 per cent on December 09), SJS Enterprises (14.5 per cent December 10), Sapphire Foods (12.4 per cent December 16) and Go Fashion (12.2 per cent December 16). 

As per Ministry of Corporate Affairs, a Qualified Institutional Buyer (QIB) is an anchor investor, who make an application of a value of at least Rs 10 crore in a public issue. There shall be a lock-in of 30 days on the shares allotted to the anchor investor from the date of allotment in the public issue. 

Allocation to anchor investors shall be on a discretionary basis and subject to the conditions laid down by the ministry and the Securities Exchange Board of India (SEBI).