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Why Did Fino Paytech Ltd Unlisted Shares Fall 53% In The Pre-IPO Market?

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In November 2021, the stock price surged relatively high and traded in a range between Rs. 400 and 425 when the subsidiary Fino Payment Bank made a debut in the grey market. Fino Paytech, the parent of publicly listed Fino Payments Bank, was the most underperformer in the unlisted space market as its shares fell by 53% in almost four months to Rs 200. This decline in the Fino Paytech Ltd unlisted shares was quite concerning for those investors who invested in the company’s unlisted shares. In this blog, we will discuss why Fino Paytech Ltd unlisted shares fell into the grey market and the possible reasons. Stride along with us till the end of this blog to know about Fino Paytech Ltd unlisted shares. 

Analysis of Fino Paytech Ltd

Established on July 13, 2006, Fino Paytech is a business and banking technology platform merged with a substantial service delivery channel to fulfil every financial need of its customers. Being an institutional investor-driven company owned by national and international customers, Fino Paytech Ltd company has emerged as a thought leader, innovator and implementer of advanced technology solutions for various institutions such as banks, government entities, microfinance institutions, and insurance companies. The company offers multiple technology-based solutions and services related to financial inclusion. 

Fino Paytech Ltd group consists of a non-banking financial company, a non-deposit accepting or holding company registered with the Reserve Bank of India. The company offers finance to poor women in rural areas of India who are organised as Joint Liability Groups (JLG). As an alternate banking channel, Fino Paytech allows excellent end-to-end customer sourcing and serving. 

Reasons for Fino Paytech Unlisted Shares Decline

The unlisted share market is less volatile than the listed market; however, fluctuations in this market affect its share prices. There are many reasons why the price of unlisted shares of any company ebb and flow, such as the company’s financial performance, industry performance, etc. Something similar happened with Fino Paytech Ltd unlisted shares, which declined by 53% in the pre-IPO market. Some analysts say that its subsidiary company Fino Payments Bank, failed to perform on the debut date, which led to rising concerns about the valuation of the unlisted shares. 

Since its listing on November 12, the stock of Fino Payments Bank has fallen 55% from its issue price of Rs. 577. Being the first profitable payment bank, the company raised about Rs 1200 through its IPO. Fino Paytech Ltd has a 75% stake in its subsidiary, while the public shareholders have the rest. The managing director and chief executive officer of Fino Payments Bank said that they would initiate the reverse merger with the holding company so that the performance of both stocks could be interlinked. It was revealed that fintech was the most targeted sector in 2021, leading to a fall in unlisted fintech stocks. These were the reasons investors faced the fall in Fino Paytech Ltd unlisted shares price.

Should You Buy Fino Paytech Unlisted Shares?

Unlisted shares are an excellent opportunity for people to earn high ROI and boost their investment portfolio. It is true that Fino Paytech Ltd unlisted shares lost their value in the previous years. Still, it has the potential to do well again and offer investors a high return on their investment. Moreover, as the share price is quite low, the unlisted share would bring significant returns for the investors in long term.

In addition, the company filed its Draft Red Herring Prospectus for Rs 1300 crore IPO with SEBI in 2021, which is still under process. Fino Paytech Ltd IPO is an opportunity for investors to earn flabbergasting returns on their investment before the company goes public. Check Fino Paytech Ltd unlisted share price today to get the better deal. 

If you want to invest in Fino Paytech Ltd unlisted shares but don’t know about the process, count on Stockify today. We have a team of expert brokers with years of experience who can help you buy unlisted shares of top pre-IPO companies in India. Apart from Fino Paytech Ltd, you can invest in different companies from industries like tech, healthcare, retail, energy, finance, etc. Connect with our experts and start trading today! 

FAQs

1. Why did Fino Paytech unlisted shares price decline?

According to the reports, the decline in the price of Fino Paytech Ltd unlisted shares happened because the bank failed to perform on the debut day. 

2. Is investing in Fino Paytech Ltd pre-IPO shares beneficial for me?

Yes, investment in Fino Paytech Ltd shares would benefit you in the long run. Unlisted share prices of this company have increased as they planned to go public; thus investing in Fino Paytech Ltd is beneficial. 

3. How do I buy Fino Paytech Ltd unlisted shares?

You can simply buy unlisted shares of Fino Paytech Ltd through Stockify. We have a team of expert brokers who make buying and selling unlisted shares easy and guide you throughout the process. 

4. How to check Fino Paytech Ltd unlisted share price?

Stockify is the platform where you can check the Fino Paytech Ltd unlisted share price. Our team keeps updating the price of unlisted shares based on market fluctuation and trends. 

5. What should I trust Stockify for trading?

Stockify is a trustworthy platform helping potential investors with unlisted share investment journeys and making their trading process hassle-free. Connect with our expert brokers to start trading today.

Table of Contents

If you have invested in Fino Paytech Ltd unlisted shares, you must know why its share price fell 53% in the grey market. Read about the possibility of whether it can give you a high return on your investment or not.

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Ex. Wipro & Finaco Founder
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