Fino Payments Bank IPO Review 2021: Fino Payments Bank will be among the first IPOs to hit the markets this month after a short break. The IPO will be open from October 29th to November 2nd. The company aims to raise Rs. 1200.29 Cr through the public offering.
In this article, we look into important information on the Fino Payments Bank IPO. We also will find out the possible prospects of the company. Keep reading to find out!
Table of Contents
About the Company
The company was initially founded as Fino Fintech Foundation Limited in the year 2007. However, the company rebranded itself and started operations in 2017 Fino Fintech Private Limited.
Fino Payments Bank offers financial products and services through the digital route. The company’s aims to provide financial services to those with low financial literacy lacking access to banking services.
Today the company is one of the fastest-growing fintech companies in the country. As of 2020, Fino Payments was ranked third among banks in facilitating digital transactions in India by the Ministry of Electronics & Information Technology.
The company also has the largest network of micro-ATMs and the third-highest deposit growth rate in FY’ 2021 according to CRISIL.
Quick Read: How to Increase Chances of IPO Allotment?
Despite being primarily engaged through the digital route the company offers all the regular banking services. These include Current accounts and Savings accounts, debit cards, micro ATM’s for depositing and withdrawing cash, facilitating domestic remittances among various others.
Its digital business model acts as one of its biggest advantages making it extremely asset-light. Its promoter Fino Paytech Ltd. is backed by ICICI Bank, Intel Capital Corporation, International Finance Corporation, Blackstone GPV Capital Partners (Mauritius) VI-B FDI and Bharat Petroleum Corporation.
The company’s income mainly relies on fee and commission-based income generated from merchant networks and other strategic commercial relationships. Their merchants allow them to further increase the reach of their financial products like third-party gold loans, insurance, bill payments and recharges. In addition to this, they also earn income through managing large Business Correspondents networks on behalf of other banks.
Key IPO Information
Fino PayTech Limited is the promoter of the company. The issue includes an offer for sale of ₹900.29 crores by its promoter. They have appointed Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services as the book running lead managers to the issue. KFin Technologies Pvt. Ltd has been appointed as the registrar to the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹1,200.29 Cr |
| Fresh Issue | ₹300.00 Cr |
| Offer For Sale(OFS) | ₹900.29 Cr |
| Opening Date | Oct 29, 2021 |
| Closing Date | Nov 2, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | ₹560 to ₹577 per equity share |
| Lot Size | 25 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Nov 12, 2021 |
Purpose of the IPO
The proceeds from the IPO will be used for
- Augmenting its Tier–I capital base to meet future capital requirements.
- To meet the expenses of the issue.
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In Closing
In this post, we covered the Fino Payments Bank IPO Review. The Initial Public Offering opens on October 29th and closes on November 2nd.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Do let us know what you think of the Fino Payments Bank IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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