Fino Payments Bank Limited IPO

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Fino Payments Bank Limited IPO

October 27, 2021
Fino Payments Bank Limited IPO

Fino Payments Bank Limited is coming out with a fresh public issue to raise 1200.29 crores from the market.

Key details of the issue:

  • Issue opens – Oct 29 (Friday)
  • Issue closes – Nov 02 (Tuesday)
  • Issue size – Rs 1200.29 crores
  • Price band – Rs 560 to 577 per equity share
  • Bid lot – 25 shares and in multiples thereof

And here are some details of the company and further details on the Fino Payments Bank Limited issue

Company details:

· Fino Payments Bank Limited is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus. They offer such products and services to their target market via a pan-India distribution network and proprietary technologies, and since 2017, they have grown their operational presence to cover over 90% of districts as of September 30, 2021.

· They operate an asset light business model that principally relies on fee and commission based income generated from their merchant network and strategic commercial relationships. Each merchant serves the banking and financial needs of its community, which in turn forms the backbone of their assisted-digital ecosystem, referred to as their “phygital” delivery model (i.e., a combination of physical and digital).

· Their products and services include various current accounts and savings accounts (“CASA”), issuance of debit card and related transactions, facilitating domestic remittances, open banking functionality (via their Application Programming Interface (“API”)), withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System “AePS”) and cash management services (“CMS”). Their merchants also leverage the customer relationships within their respective communities to facilitate them cross-selling other financial products and services such as third party gold loans, insurance, bill payments and recharges. They also manage a large BC network on behalf of other banks.

· They have a strong leadership position within the Indian fintech industry, for instance they were ranked third among banks in facilitating digital transactions, as of February 2020 by the Ministry of Electronic & Information Technology; and had the largest network of micro-ATMs, as of August, 2021 (source: CRISIL).

· They are also the only payments bank to offer a subscription based savings account in India (source: CRISIL).They believe customer satisfaction, their brand and reputation have played an important role in becoming an industry leader in fintech products and services, as well as to further developing their business and improving their market position.

· Their significant geographic coverage and position as a large-scale, leading technology-enabled company with a diverse banking product offering also provides economies of scale that yield significant operating efficiencies, supports future growth and also helps to diversify some of their risks, such as regional or geographical risks or concentration risks.

Issue size: Rs 1200.29 crores

Issue break-up:

  • QIB – 75% of the net offer – Rs 897.97 crores
  • NIB – 15% of the net offer – Rs 179.59 crores
  • RET – 10% of the net offer – Rs 119.73 crores
  • EMB – Rs. 3 crores

Listing: NSE and BSE

Registrar: KFin Technologies Pvt. Ltd

UPI: All retail applications through brokers are compulsorily in UPI mode

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