Fino Payments Bank IPO subscribed 2.03 times

Published on Nov 02, 2021 17:18

The initial public offer (IPO) of Fino Payments Bank received bids for 2,32,46,150 shares as against 1.14 crore shares on offer on Tuesday (2 November 2021), according to stock exchange data at 17:00 IST. The issue was subscribed 2.03 times.

So far, the retail individual investors category was subscribed 5.92 times. The qualified institutional buyers (QIBs) category was subscribed 1.65 times. The non institutional investors category was subscribed 21%.

The issue opened for bidding on 29 October and it will close today, 2 November 2021. The price band of the IPO is fixed at Rs 560-577 per share. An investor can bid for a minimum of 25 equity shares and in multiples thereof.

The IPO consists of a fresh issue to raise Rs 300 crore and an offer of sale (OFS) of 1,56,02,999 shares. The bank proposes to utilize the net proceeds from the fresh issue towards augmenting its Tier-I capital base to meet its future capital requirements. Additionally, the bank expects to receive the benefits of listing the equity shares on the stock exchanges.

Ahead of the IPO, Fino Payments Bank on 27 October 2021 finalized allocation of 93,37,641 equity shares to anchor investors at an allocation price of Rs 577 per share, aggregating to Rs 538.78 crore.

Fino Payments Bank is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have payments focus. It offers such products and services to target markets via a pan-India distribution network and proprietary technologies. The bank has grown its operational presence to cover over 90% of districts end September 2021.

The payment business operates an asset light business model that principally relies on fee and commission-based income generated from merchant networks and strategic commercial relationships. Each merchant serves the banking and financial needs of its community, which in turn form the backbone of assisted-digital ecosystem, referred to as "phygital" delivery model (i.e., a combination of physical and digital). The use of analytics on the data enhances the merchant`s ability to cross sell the third-party products offered by the bank to existing customers, thereby increasing potential revenue and opportunity to further customize products and services offering.

The bank reported a net profit of Rs 3.13 crore on a net total income of Rs 203.19 crore in quarter ended June 2021.