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Fino payments bank IPO should you hold or sell FPBL share for listing

 Fino Payments bank share IPO Subscription Data:

The IPO of Fino Payments Bank has received mixed response from investors. We also informed our website weavers that Fino Payments may avoid the IPO. Last day of Subscription of Fino Payments Banks IPO g ot subscribed only 2.03 times. The IPO of Fino Payments Bank was Rs 1200.03 crore. And according to NSE data, the IPO of Fino Payments Bank received bids for 2,32,46,150 equity shares against 1,14,64,664 of equity shares. This means that this IPO got almost two times the repossession. out of this , Portion of qualified institutional buyers only got subscribed by 1.65 Times and the portion of non-institutional investors got subscribed only about 21 per cent. The response from retail investors to the IPO of Fino Payments Bank was slightly better and the portion of retail individual investors was subscribed 5.92 times. The fresh issue of Fino IPO  was 300 crores and rest of the portion was from offer for sale.

If an investor has bid in the IPO of Fino Payments Bank, then the shares allotment will be done on November 9, 2021. The listing of the IPO of Fino Payments Bank is going to take place on 12 November 2021. Now investors and traders, a question must be coming in the mind whether Fino Payments Bank IPO should hold and sell after listing? Let us try to find the answer of this question in brief.


Fino payments bank IPO should you hold or sell FPBL share for listing


Fino Payments bank share hold or sell?

Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory and Securities (India) had had appointed Fino Payments Bank to manage the IPO.

FPBL IPO came up with the higher valuations of more than 30 multiple compared to FY 21 Book value. It was a clear signal that IPO price band 560rs to 577rs per equity share of Fino Payments bank was highly overvalued. There was nothing on the table for the investors post IPO listing. That is why we had given the alert to our website viewers to avoid this IPO for subscription. As per the sources after the FPBL IPO listing of share price of Fino payments bank is expected to trader nearly 9.95 price to book value of the company with more than 4500 cr market capital. Further if we discuss FPBL share buy or Sell after IPO listing then Fino payments bank mainly generate its income from fees & Commission because it is digital online platform for financial services & we can say that more than 90% income comes to this small payment bank from the Commission and other service fees charges.  Therefore it is very risky for the investors. The growth of most of the lenders keep depends on incremental digital payment opportunities. Some reports also published that Digital payments revenues are expected to reach more than 32,00rs trillion by FY 24 or FY25. But it is very long term story.

grey market price or  premium then there is no interest from the grey market traders in fino payments bank IPO. As we discussed earlier in our last recommendation  on Fino IPO that We should not be surprised if FINO Payments bank IPO List on discount price or we may see Flat to Positive opening of Fino Payments IPO.

Should you buy Fino Payments bank share?

If any investor has very long term view of investment into the FPBL share then investors should try to accumulate this share at the lower levels. Otherwise many other options are already available into the Indian stock market. One Positive points only goes into the favour of Fino Payments bank share that It has more focus on technology development as well as on customers leads to customisation and easy integration into newly built systems. Also FPBL has very good support of Big financial institutes investors like ICICI group, Blackstone and few others which create investor confidence for Fino Payments bank .  But big competition into the market with increasing digitisation of the payment gateways like UPI gives challenge to Fino for maintaining and searching new merchants and customers for the company business.  According to our view it is very challenging business model.  More dependency on few financial institutes is also creating risk for the company. Therefore, If any long term investors has risk taking ability only then they should take entry into FPBL share after listing otherwise select other listed stocks  from Indian stock market.

 Also read: Nykaa IPO, should you hold or sell nykaa share after Listing

What are the strategy investors or traders should adopt in Fino Payments bank IPO after listing?

If by any chance Fino Payments bank IPO open on positive note then it is best to book Profit on higher levels. Investors or Traders should keep stoploss of 550rs or 540rs on the closing basis.

If long term investors want to add Fino payments share into their portfolio then 15% to 20 % discount price i.e 480rs or 450rs from the IPO higher Price of 577rs will be best way to start accumulate FPBL share on lower levels in very small sets of shares.

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