India1 Payments Ltd IPO

IPO synopsis:
India1 Payments Ltd which was previously known as BTI Payments, filed their DRHP with SEBI. The issue comprises of a fresh issue worth Rs.150 crore and an offer for sale of up to 10,305,180 equity shares. Up to 25.08 lakh equity shares are being offloaded by BTI Payments Singapore, Banktech Group is offloading 1 lakh equity shares, India Advantage Fund S3 I is offloading around 49.94 lakh equity shares, India Advantage Fund S4 I is set to offload up to 24.86 lakh equity shares and lastly, Dynamic India Fund S4 US is planning on offloading 21.6 lakh equity shares in the OFS. 
According to the DRHP, the company is planning on a pre-IPO placement worth Rs.30 crore. The book running lead managers to the issue are IIFL Securities Ltd, JM Financial Ltd and Edelweiss Financial Services Ltd. 

Objectives of the issue:
1.    Rs.63.25 crore of the net proceeds is to be used for the repayment and prepayment of debt undertaken by the company 
2.    Rs.49.27 crore is to be used to fund capital expenditure requirements of the company for setting up ATMs
 

About the company:
The company was established in 2006, in Mumbai as Banktech India Pvt Ltd. Now, India1 Payments is the largest non-bank ATM operator, which is otherwise known as White label ATM operator, in the country. This is based on the number of ATM transactions in FY21. The company operates a vast network of 8,520 ATMs across 14 states and union territories, as of June 30, 2021. These ATMs are named “India1 ATM”. 
The company’s ATMs are concentrated in semi-urban and rural areas of the country and around 7,619 ATMs are located in these areas as of June 30, 2021. The company’s customers include people who are a debit card or credit card holder of any one of the 100 banks that are a part of the National Financial Switch which is operated by the National Payments Corporation of India. 
India1 Payments generates revenue on a per-transaction basis. They charge an interchange fee which is paid by the customer’s bank for processing the ATM transactions. The company charges Rs.15-17 for financial transactions and Rs.5-6 for non-financial transactions. 
The gross transaction value of cash transactions from the company’s ATMs for FY21 and Q1 ended 30 June 2021, stand at Rs.439.75 billion and Rs.136.39 billion respectively. According to the managing director and chief executive of India1 Payments, the company was able to increase their ATM network by 300 in the last four months. In August 2021, the company celebrated a milestone of 9,000 ATMs. The number of installed ATMs have grown at a CAGR of 2.4% between FY16 and FY21.