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Fino Payments Bank Files DRHP with SEBI for IPO

05 August 20226 mins read by Angel One
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Fino Payments Bank has filed a DRHP with market regulator SEBI to fundraise through its initial public offer. As per the DRHP, the said IPO will comprise a new issue of shares worth Rs. 300 crores and an OFS of a maximum of 15.60 million shares.

It is speculated that this company could opt for a pre-IPO placement to aggregate a maximum of Rs. 60 crores. The success of such a move could lower its expected fresh issue of shares.

Read along to find out more about this upcoming initial public offering.

How does Fino Payments Bank Plan to Use the IPO Proceeds?

This upcoming IPO is expected to raise around Rs. 1300 crores through its initial share-sale.

The company plans to use its IPO proceeds in these ways –

  • To augment its tier-I capital.
  • To address future capital requirements.

This could help the company boost its products and service offerings. It will also prove effective in strengthening its business model even further.

On that note, let us quickly check out the key highlights of this company in brief.

A Quick Glance at Fino Payments Bank Highlights

Here are some of the most noteworthy points that you should know about Fino Payments Bank.

  • The company runs on an asset-light business model.
  • Its major sources of income include – fees and commissions generated through its merchant networks as well as strategic commercial relationships.
  • This company extends a wide range of financial products and services. Some of its offerings include current and savings account services, debit card issuance, and cash management services.
  • As of 31 March 2021, this fintech company facilitated 434.96 million transactions and carried out gross transactions worth Rs. 1.33 trillion.
  • By the end of March 2021, Fino Payments Bank has nearly 54 branches and a total of 143 customer service points. Also, it has around 17,269 active correspondents in the country.
  • It boasts of having the country’s largest network of micro ATMs with a market occupancy of 55%.
  • The company has a robust merchant network of nearly 6.4 lakh and around 25.7 lakh bank accounts.

Also, as a response to government relief disbursement, this fintech witnessed a surge in its banking transactions.

This makes us wonder, where does the company stand financially?

An Overview of Fino Payments Bank’s Current Financial Position

In the Q4 of 2019-2020, Fino Payments Bank has been registering profits. In the fiscal year of 2020-2021, this bank recorded a profit of Rs. 20.47 crores, when compared to its previous year’s registered loss of Rs. 32.04 crores.

Also, in FY 2021, this company recorded 56.25% as its tier-1 capital.

Fiscal Year Total Assets in Million Total Revenue in Million Profit After Tax in Million
2020-2021 Rs. 10,102.91 Rs. 6,240.01 Rs. 6,840.72
2019-2020 Rs. 7,910.27 Rs. 6,913.97 Rs. 3,711.21
2018-2019 Rs. 2,985.05 Rs. 3,189.79 Rs. 2,869.43

Additionally, this company has strong backing from marquee investors such as Blackstone, Bharat Petroleum, IFC, and ICICI Group.

Final Takeaway

Fino Payments Bank happens to be the first of profitable fintechs to file an initial public offer. Judging the momentum of both domestic and international markets, the next one to two years seem conducive for its listing.

However, it is still too early to make any speculations about the prospects of this IPO or its course of development. Investors who are willing to park their money in this space could consider conducting a thorough analysis of the company’s SWOT and allied market trends. By doing so, they will develop a profitable IPO subscription strategy by the time its timeline and details are announced.

 

Frequently Asked Questions

  1. Which entities are appointed as the lead managers for Fino Payments Bank’s IPO?

Axis Capital, Nomura Financial Advisory and Securities, ICICI Securities, and CLSA Capital are appointed as the lead managers of this upcoming IPO.

  1. What will be the issue type of Fino Payments Bank’s IPO?

This upcoming IPO will be of book built issue type.

  1. Which promoter is participating in Fino Payments Bank’s OFS?

As per DRHP, promoter Fino Paytech will make an OFS of 15,602,999 equity shares.

  1. When will Fino Payments Bank IPO open for subscription?

Fino Payments IPO is yet to release the tentative dates of its IPO timeline.

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