Fino Payments Bank Limited | Globe Capital
Fino Payments Bank Limited
Closed
Price Band
Rs. 560 – 577
IPO Issue Period
Oct 29, 2021 to Nov 02, 2021
Issue Size
Rs. 1200.29 Cr.
Face value
Rs. 10/-
Fresh issue
Rs. 300.00 Cr.
Offer for sale
Rs. 900.29 Cr.
Minimum Shares for Retail
25 shares
Maximum Shares for Retail
325 shares
Listing on
NSE, BSE
Issue Type
Book Building
Tentative Listing Date
12-Nov-21
QIB
Not More than 75% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 10% of the offer
Registrar to the Issue
KFintech Private Limited

Axis Capital Limited, CLSA India Private Limited, ICICI Securities Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd

Fino Payments Bank Limited (“Fino Bank”) was incorporated on June 23, 2007. Fino Bank is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus. The Bank offers such products and services to their target market via a pan-India distribution network and proprietary technologies, and since 2017, they have grown their operational presence to cover over 90% of districts as of September 31, 2021. Fino Bank operates an asset light business model that is underpinned by their “phygital” delivery model (i.e., a combination of physical and digital) and relies on their merchant network and other participants. The company’s merchants facilitate them in cross-selling their other financial products and services such as third-party gold loans, insurance, bill payments and recharges. Fino Payments also manages a large BC (Business Correspondents) network on behalf of other banks. For revenue generation, the company relies on fees and commissions from their merchant network and strategic commercial relationships. It is backed by marquee investors such as Blackstone, ICICI Group, Bharat Petroleum and International Finance Corp. Fino PayTech Limited is the company promoters.

For year/ period ended ( in Cr.)

31 Mar 2021 31 Mar 2020 31 Mar 2019
Total Revenue 791.03 691.4 371.12
Profit After Tax 20.47 -32.04 -62.38
EPS 2.62 -4.11 -8
OPM(%)
PATM(%)
  • It has unique DTP (Distribution, Technology, Partnership) network helps in better customer servicing
  • Focus on technology development and in-house technological expertise
  • Customer centric and innovative business model
  • It has highly experienced management team
  • Its vision of socially inclusiveness and empowerment
  • Augmenting Bank’s Tier – 1 capital base to meet its future capital requirements.
  • To meet the expenses in relation to the offer.

The company is a novel technology company in the financial sector. It enjoys a niche place. For the last three fiscals, it has posted an average negative earnings and hence it has a negative P/E. Considering all these, risk seeker/cash surplus investors may consider investment for the long term.

Timeline
Application Start
29-10-2021
Application End
02-11-2021
Allotment Begins
09-11-2021
Refund Initiation
10-11-2021
Allotment Date
11-11-2021
Listing on exchange
12-11-2021
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