The IPO of Fino Payments Bank opens later this week, on October 29. The lender has fixed a price band of ₹560-577 a share for its initial public offering, which concludes on November 2. The ₹1,200-crore initial public offer (IPO) includes a fresh issue of equity shares worth ₹300 crore and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.
Here are 10 things to know about Fino Payments Bank IPO
Fino Payments Bank IPO issue break-up: 75% of the total offer has been reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.
Allotment and listing tentative timeline: According to brokerages, finalization of allotment is likely to happen on 9th November and listing likely on 12th November.
Lot size: Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter. KFin Technologies Pvt. Ltd is the registrar for the Fino Payments Bank IPO and will manage allotment and refund. Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the book running lead managers to the issue.
Post IPO, the holding of promoters and promoters group will fall to 75% from 100%.
Proceeds from the fresh issue would be used towards augmenting the bank's Tier-1 capital base to meet its future capital requirements.
Fino Payments Bank (FPBL) is a scheduled commercial bank serving the emerging India market with its digital based financial services. It has has built a pan-India presence with 724,671 merchants (own and API) as of June 30, 2021 which are typically located in Tier-2 and Tier-3 towns.
They currently have approximately 17,430 active BCs across India. Additionally, they operate 54 branches and 130 Customer Service Points as of June 30, 2021.
Fino Payments Bank Limited was incorporated in 2007 and it offers a diverse range of financial products and services that are primarily digital and have a payments focus.
The company is a fully-owned subsidiary of Fino Paytech. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).
Its revenue for FY21 stood at ₹791 crore that grew at a CAGR of 29% in the last three years and the bank registered a profit of ₹20.5 crore in FY21. (With Agency Inputs)
