About Fincare Small Finance Bank IPO

Fincare Small Finance Bank is a digital-first financial services provider. It caters to the requirements of banked and unbanked individuals residing in the rural as well as semi-urban areas of India. It was formed following a merger of Future Financial and Disha Microfin. In the first quarter of FY2020, Fincare Small Finance Bank was added in the Second Schedule of the Reserve Bank of India Act, 1934.

Fincare Small Finance Bank IPO Objectives :

- Augmentation of its Tier- 1 capital base

- Fulfilment of general corporate purposes

Fincare Small Finance Bank IPO - Details

Fincare Small Finance Bank has filed preliminary papers with SEBI to raise Rs. 1,330 crores via an initial public offering. The Bengaluru-based company’s IPO will include a fresh issue worth Rs. 330 crores along with an offer for sale of Rs. 1,000 crores by the company’s promoter, Fincare Business Services Limited.

Opening Date

-

Closing Date

-

Price Band

₹ -

per equity share

Issue Size

₹ - Cr

Face Value

₹ -

per equity share

Market Lot

- Shares

Opening Date

-

Closing Date

-

Price Band

₹ -

per equity share

Issue Size

₹ - Cr

Face Value

₹ -

per equity share

Market Lot

- Shares

Listing at NSE, BSE

Fincare Small Finance Bank IPO Important Dates

IPO Open Date -
IPO Close Date -
Basis Of Allotment Date -
Initiation Of Refunds -
Credit Of Shares To
Demat ACcount
-
IPO Listing Date -

Why Should You Invest in Fincare Small Finance Bank IPO?

Fincare Small Finance has an adequate capital position which is well-supported by a multifaceted investor base. Furthermore, the company has an efficient and highly experienced management team that has been able to adjust the risk management processes according to the evolving nature of business.

Considering Fincare Small Finance Bank’s current position, it appears that it will be able to expand its operations, which is enticing for investors. Accordingly, one may consider subscribing to this company’s initial share sale.

Financial Highlights

Financial Year Total Assets (in million) Total Revenue (in million) Total Expenses (in million) Total Profit/Loss after Tax (in million)
2018 Rs. 22,741.15 Rs. 3,504.98 Rs. 4,480.48 (Rs. 795.46)
2019 Rs. 41,717.40 Rs. 6,748.82 Rs. 5,729.02 Rs. 224.34
2020 Rs. 71,162.74 Rs. 12,157.20 Rs. 10,722.71 Rs. 1,372.74
For the year ended 31 December 2020 Rs. 76,233.77 Rs. 9,983.06 Rs. 8,943.79 Rs. 2,010.01

How to apply for Fincare Small Finance Bank IPO?

You can apply for the Fincare Small Finance Bank IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Fincare Small Finance Bank IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Fincare Small Finance Bank IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Fincare Small Finance Bank IPO – Noteworthy Highlights

Here are some essential highlights in relation to Fincare Small Finance Bank:

1. This company recorded the highest growth rate in terms of advances from FY2018 to FY2020.

2. In FY2020, Fincare Small Finance Bank recorded the best adjusted ROA and ROE among the small finance banks in India.

3. The promoter of this company is Fincare Business Services Limited.

4. Fincare Small Finance Bank has raised funds worth Rs. 1.9 billion over 1 round.

Fincare Small Finance Bank IPO - SWOT Analysis

strengths

Strengths

  • Sufficient capital position: Fincare Small Finance Bank has maintained a favourable capital position despite uncertainty in asset quality owing to socio-political concerns. In FY2020, this company raised funds worth Rs. 95 crores by issuing rights to its existing shareholders.
  • Highly experienced management team: This company has an efficient management team comprising experienced professionals from different segments of the financial services sector. The leadership team continues to remain stable with Mr. Keyur Doshi, Mr. Rajeev Yadav, and others.
  • Sufficient risk management systems: Fincare Small Finance Bank has been able to adjust its processes according to the growing scale of operations and the evolving nature of business, primarily focusing on technology. The company’s efficient internal control and audit systems have also remained intact.
Weaknesses

Weaknesses

  • Low portion of CASA: In relation to overall external borrowings, the proportion of CASA continues to remain low in comparison to most of its banking peers.
  • High operating costs: After this company converted into a bank in 2017, its operating expenses surged to over 9%, owing to the cost of transitioning. Some of the new expenses included costs incurred for the upgrade of branch infrastructure and the increasing cost of technology.
  • Customers’ credit risk profile: The customer base of Fincare Small Finance Bank primarily comprises individuals with a below-average credit profile. Many of them belong to the semi-skilled self-employed division. As a result, these customers can face issues in relation to cash flow after the pandemic-induced economic slowdown, which would impact their repayment capability.
Opportunities

Opportunities

  • Sustainable growth in operating scale: With the company in a favourable position to ensure a sustained increase in the scale of operations, there appears to be an excellent opportunity for this company. Furthermore, if it is able to raise deposits with a longer tenure while maintaining sufficient liquidity, this company can witness substantial growth.
Threats

Threats

  • Deterioration of asset quality: The higher GNPA owing to deterioration in asset quality along with the weakening of this company's earnings profile poses a significant threat. Also, Fincare’s inability to increase the proportion of CASA is concerning.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Reputation: One of the major strengths of Aditya Birla Sun Life AMC is its market reputation. Being in this business for more than 20 years, the company has delivered consistent returns. This brand image creates a base for the company to scale further.
  • Strong distribution channel: The company has a vast distribution channel that helps it to cater to a larger demographic.
  • Strong investment team: The investment team behind the scene led by experienced fund managers rely on research and analysis to ensure expected returns.

Weaknesses 

  • Inconsistent growth in revenue: The revenue growth for ABSL AMC has been inconsistent at times, which can be a concern.
  • Heavy reliance on distributors: The operation relies heavily on distributors, which can sometimes be an issue.

Opportunities 

  • Low industry penetration: Aditya Birla Sun Life AMC operates in an underpenetrated business segment with considerable potential.

Threats 

  • Tough competition: Aditya Birla Sun Life is working in a segment where its rivals are already listed and hold a significant market share.

Competitive Analysis: Market Peers

This table provides an insight into the competition that Fincare Small Finance Bank faces from its listed peers:

Name of the Company Fincare Small Finance Bank Bandhan Bank CreditAccess Grameen Bank AU Small Finance Bank
Earnings Per Share (EPS) 24.43 18.78 23.20 22.78
Total Income (Rs.) 12,157.20 million 30,237.37 million 17,054.80 million 49,919.76 million
Return on Net Worth (RoNW) 15.87% 19.90% 11.27% 15.42%
Face Value Rs. 10 per share Rs. 10 per share Rs. 10 per share Rs. 10 per share

Fincare Small Finance Bank IPO FAQs

How can investors apply for Fincare Small Finance Bank IPO via Angel One App?

Here’s how to apply for Fincare Small Finance Bank IPO via Angel One’s mobile-based application:
Step 1: Open the Angel One app and Navigate to the ‘Investment Opportunities’ section
Step 2: After entering all the required details and select “IPOs and FPOs”
Step 3: Enter your NPCI - approved UPI ID/Handle
Step 4: To finish placing the order, click on ‘invest’

Where can individuals find their UPI ID?

Individuals can navigate to the profile section of the UPI App they are using to locate the UPI ID. Also, they can click here and check out the screenshots, which might help them to spot them.

Can investors apply for Fincare Small Finance Bank IPO even if they do not have a UPI ID?

If individuals do not have a UPI ID, they can create the same using any of the UPI Handles in the NPCI list. As an alternative, they can apply through ASBA with their bank or via the physical form.

How can one create his/her UPI ID?

Follow these steps to create a new UPI ID using the BHIM app:
Step 1: Download the BHIM app on your phone
Step 2: Complete the verification of your mobile number
Step 3: Register the passcode as it is needed to open the mobile-based application
Step 4: Choose your bank from available options
Step 5: Upon selecting the bank, this app will fetch all details in relation to your bank account
Note that if individuals have multiple bank accounts, they will have to choose only one account.
Step 6: After registering your bank account, makes sure to set up a PIN to secure the UPI app.
After completing the steps mentioned above, you can check your UPI ID in the app’s profile section.

Why am I not being able to place my Fincare Small Finance Bank IPO order using my UPI ID/handle?

Note that only NPCI-approved UPI ID/Handles are allowed. If you are not being able to apply for Fincare Small Finance Bank IPO using your existing UPI ID/Handle, we advise you to check the banks/apps that have the green signal from NPCI to provide UPI service.

Why am i not being able to find UPI ID listed in dropdown menu on Angel One’s mobile-based app when applying for IPO?

If you are not able to find your UPI Handle in the dropdown menu on the Fincare Small Finance Bank IPO page in the Angel One app, it is because the UPI Handle is not NPCI-approved. Remember, you will not be able to apply for the initial share sale unless you use or create another UPI ID with any of the institutions in the NPCI list.

When does an investor receive his/her UPI mandate after placing IPO order?

Individuals will receive the UPI mandate request within 15 to 20 minutes on the relevant app after they bid for Fincare Small Finance Bank IPO on the Angel One app. That said, there could be a slight delay in receiving the request from their respective banks.

How do I approve the Fincare Small Finance Bank IPO mandate request?

To learn how you can approve Fincare Small Finance Bank IPO mandate request for the UPI UPI apps that are used commonly, click here.

Why is the UPI mandate request still pending even though I have approved it?

You can find the updated status of the UPI mandate request in the IPO order book in a short period of time after approving it. Note that the status does not get updated in real-time.

How much time does it take to approve the UPI mandate request?

After Fincare Small Finance Bank IPO subscription closes, individuals can approve the UPI mandate request any time before 12 pm on the next working day.

Can an investor submit more than one application for Fincare Small Finance Bank IPO?

Individuals can subscribe to Fincare Small Finance Bank IPO using the same PAN only once. Thus, if one applies for the initial share sale via different platforms using the same PAN, he/she will not get allotment as the application will get rejected.

How much does it cost to apply for Fincare Small Finance Bank IPO?

Investors do not need to pay any charge if they apply for Fincare Small Finance Bank IPO via Angel One’s online trading platform.

How can NRIs subscribe to Fincare Small Finance Bank IPO using Angel One’s mobile-based application?

NRIs are not eligible to apply for Fincare Small Finance Bank IPO using the Angel One app. As an alternative, they can subscribe through the Application Supported By Blocked Amount (ASBA) via their bank.

What is the cut-off price in relation to IPO, and why should one place the IPO order at a cut-off price?

Cut-off price refers to the price at which Fincare Small Finance Bank will issue its shares to investors via its initial public offering. The cut-off price in relation to the initial share sale can be obtained at the allotment stage. In case an investor places the IPO order at this price, it implies that he/she is ready to bid at that particular price. Ideally, individuals put in bids at the cut-off price to maximise the chances of getting an allotment.

Can I apply for Fincare Small Finance Bank IPO if my bank account is not linked with the Angel One app?

Yes, you can subscribe to FIncare Small Finance Bank IPO through a different bank account. However, make sure that it is in the investor’s name.

Can investors subscribe to Fincare Small Finance Bank IPO using their bank’s current Account?

It is advised that individuals apply for Fincare Small Finance Bank IPO using their savings account as many banks do not process IPO orders that are placed via a current account.

Can an individual apply for Fincare Small Finance Bank IPO using his/her HUF’s account?

No, individuals cannot apply for Fincare Small Finance Bank using their HUF’s account via the Angel One app. However, they can apply through the ASBA route with their bank.

Can I subscribe to Fincare Small Finance Bank IPO using my daughter’s bank account if she’s under the age of 18?

The Angle One doesn’t allow minors to apply for Fincare Small Finance Bank IPO. However, minors can apply via the ASBA process with their bank.

Why my bank account hasn’t been debited even though I’ve placed IPO order?

According to the ASBA processes, a bank will hold/block the money once you place Fincare Small Finance Bank IPO order. If shares are allotted to you, the amount will get debited from your bank account. Nevertheless, in case you don't get allotment, the amount will be unblocked and transferred back to your account before the expiry of the UPI mandate.

Can investors modify their bid if they've already applied for Fincare Small Finance Bank IPO?

Once investors place the Fincare Small Finance Bank IPO order, they can change the lot size as well as the UPI ID in relation to their bid. However, it is imperative to note that if individuals modify the IPO order after having approved the UPI mandate request, the total bid amount will get blocked along with the amount that was held for the initial bid. Also, they’ll receive one more UPI mandate request for the updated bid. Nevertheless, if investors did not approve the initial mandate request, no amount would be held for the original bid.

Are investors allowed to cancel/withdraw/delete their bid after placing IPO order?

In relation to the Fincare Small Finance Bank IPO application procedure on Angel One’s mobile-based application, deleting/cancelling/ withdrawing is the same thing. Follow these steps to cancel your application:
Step 1: Navigate to the ‘Investment Opportunities’ on the Angel One app
Step 2: Go to the “IPOs and FPOs” section
Step 3: Select the “Order Book” option
Step 4: Choose the Fincare Small Finance Bank IPO order
Step 5: Select “Details”
Step 6: Once you see the “Cancel” option, select it to withdraw your IPO application

How does an investor check his/her check Fincare Small Finance Bank IPO status?

Individuals who have subscribed to Fincare Small Finance Bank IPO can follow these steps to check the allotment status:
Step 1: Open the Angel One app
Step 2: Navigate to the “Investment Opportunities” section
Step 3: Select “IPOs and FPOs”
Step 4: Tap the “Order Book” option to check the application status

Why is my Fincare Small Finance Bank IPO application rejected?

Here are some common reasons why your Fincare Small Finance Bank IPO application might get rejected:
- The UPI PIN or ID that you entered when approving the mandate was incorrect
- Your bank account/ DEMAT account/ UPI ID might not be mapped with the same PAN
Here’s an example:
Suppose Ravi is using Rohan’s UPI ID to subscribe to Fincare Small Finance Bank IPO with his own DEMAT account. In this case, Ravi’s application will get cancelled owing to these reasons:
- Rohan’s bank account is not linked with Ravi’s DEMAT account
- Rohan’s UPI ID is not linked with Ravi’s PAN

Enjoy Zero Brokerage on
Stock Investments

Get the link to download the app

Enjoy Lifetime Free Delivery Trade

Download the app now

Or Scan below QR Code

to download App