Morgan Stanley bought over 6.7 lakh shares in Niyogin Fintech at a total cost of Rs 3.74 crore via a block deal on Tuesday. The stock was purchased at a price of Rs 55.65 apiece, up 2.8% against the Monday closing price of Rs 54.14 on the BSE.
The seller in the deal was Think India Opportunities Master Fund LP which sold as many shares. The fund held 87,24,344 shares in the company as on September 30, 2024 which represented 9.17% stake.
The stock surged 15% to hit the day’s high of Rs 63.60 before closing at Rs 62.20.
Niyogin Fintech has a market capitalization of Rs 591.87 crore.
The company started by building a leading ‘Neobank’ platform infrastructure company to serve MSMEs for their credit related requirements, financial inclusion, investments and SAAS services.
The stock has been a laggard for the past 1 year and has seen its share price erode by 14% in the said period. In this year, so far, the decline has been more prominent as the stock has seen its price wipe-off by 33%. The underperformance has been despite the headline S&P BSE Sensex delivering 21% results in the last 12 months.The counter has been on a downward trajectory since hitting its 52 week high of Rs 98. It hit a 52-week low of Rs 45 in October this year. The correction has dragged the stock below its 200-day simple moving average (SMA) of Rs 66 while it is still trading above its 50-day SMA of Rs 53.Notwithstanding the correction, the stock is trading in an overbought zone with MFI of 87 as reported by Trendlyne. A number above 70 is considered to be overbought while below 30 is seen as oversold. It has also been quite volatile with a 1-year beta of 1.1.
Also Read: BJP’s Maharashtra win puts spotlight on PSU stocks; will momentum sustain till Budget 2025?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)