Fino Payments Bank IPO - 7 Things to Know

The IPO of Fino Payments Bank opens on 29th October and closes for subscription on 02nd November. Fino Payments Bank is a Fintech company that offers a wide array of digital financial products for customers. Here is a quick look.
 

Highlights of the Fino Payments Bank IPO

1) Fino Payments Bank is coming to the IPO market with an overall issue size of approximately Rs.1,300 crore. This will include a fresh issue of Rs.300 crore and an offer for sale of 1.56 crore shares. That implies a price band in the range of Rs.610-640 for the IPO, although the actual announcement of price band is yet to be made.

2) Fino Payments Bank was incorporated in 2017 as a pure digital payment bank registered with RBI. It offers CASA deposits, facilitates remittances, offers debit card related transactions, CMS and cash withdrawal via micro ATMs and Aadhar enabled ATMs. Its revenues come from feel income and commissions from merchant networks.

3) The company has turned around to making profits in FY21. In the fiscal year ended March 2021, Fino Payments Bank earned revenues of Rs.791 crore and reported profits of Rs.20.5 crore. It has total asset base of around Rs.1,010 crore.

4) The promoter, Fino PayTech Ltd holds 100% stake in Fino Payments Bank and will dilute its stake as part of the offer for sale (OFS) component. The fresh issue component will be used by Fino Payments bank to augment its Tier-1 capital to meet the needs of future asset book expansion.

5) Fino Payments Bank, under the conditions of the RBI Payment Bank License, is not allowed to give loans. It has to largely rely on fee income. Its focus is on the mass market with low literacy and low levels of access to financial products and services.

6) Fino Payments Bank has some achievements to its credit. Ministry of Electronics has ranked Fino third among banks facilitating digital transactions in India. According to CRISIL, Fino Payments Bank has the largest network of micro-ATMs and its deposit growth was third-best, albeit on a very small base.

7) The Fino Payments Bank IPO will be lead managed by Axis Capital, CLSA India, ICICI Securities and Nomura. KFintech will be the registrars to the issue.

The demat credits are expected to happen on 11-October and listing on 12-October.

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