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Fintech Fino Payments Bank Not Capitalising on the Bull Run

07 February 20233 mins read by Angel One
Fintech Fino Payments Bank Not Capitalising on the Bull Run
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Fino Payments Bank has unfortunately not capitalised on the bull run markets, as non-institutional buyers stayed away from the sale. Fino Payments Bank launched its IPO on 28 October 2021 and 2 November 2021 was subscribed 2.03 times. Its shares also had a lukewarm response on the bourse. Fino Bank’s stock was listed at a 5% discount to the issue price on 12 November.

On BSE, this company’s shares opened at Rs. 548 and on the NSE it opened at Rs. 544.23. Here are the highlights of the story.

Key Highlights Of Fino Payments Bank IPO

  • Qualified institutional buyers supported the offer 1.65 times.
  • Retail investors supported the offer at 5.92 times subscription.
  • Non-institutional buyers subscribed at 21% and employees at 93%.
  • Fino Payments Bank managed to raise around Rs. 1,200.29 crores through its IPO on 28 October and 2 November. There was a fresh issue of equity shares of Rs. 300 crore and an offer sale of Rs. 900.29 by the promoter.
  • Fino Bank will use this raised money to meet future capital requirements.

About Fino Payments Bank

This bank offers primarily digital services. Moreover, it offers a multifaceted plethora of financial products and services which are payments focused.

This bank operates an asset-light business model. It relies heavily on commission and fee-based income. This income has been generated from merchant networks and some commercial relationships.

Here are some details regarding the number of transactions the online platform has facilitated.

  • In FY 2021 the payments platform facilitated around 43.5 crores worth of the transaction. The gross transaction value was around Rs 1,32,930.69 crores.
  • By June 2021, the payments platform had facilitated a 12.33 crores transaction worth Rs 39,035.99 crores.

Moreover, the bank had posted a CAGR of 46% and reported profits of around Rs 20 crores in the Financial Year 2021.

Bottom Line

Experts were not favourable to the bank’s IPO as they believe the investors do not have much gain to make from the outset.

However, some believed that investment in the profit-making entity was justified.


Frequently Asked Questions

  1. When was Fino Payments Bank established?

Ans. Founders incorporated Fino Payments Bank on 4th April 2017.

  1. What type of bank is FinoPayments Bank?

Ans. Fino Payments Bank is a type of Digital Banking. 

  1. Who is the chairman of Fino Payments Bank?

Ans. The chairman of Fino Payment Bank is Mahendra Kumar Chohan.


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