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Yeh IPO kya kahta hai?
FINO PAYMENTS BANK LIMITED

All that you should know about the Company before applying for the IPO.

October 29, 2021
IPo-Aditya Birla Sunlife

The public issue of equity shares of Fino Payments Bank Limited will open for subscription on October29, 2021 and closes on November 02, 2021. It is expected to list on the stock exchanges on November 12, 2021. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analysis the IPO.

Company Profile

Incorporated in 2017, the Company is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus. It has a strong leadership position within the Indian fintech industry. It was ranked 3rd among banks in facilitating digital transactions (as of February 2020); and had the largest network of micro-ATMs (as of August, 2021). It is also the only payments bank to offer a subscription based savings account in India.

Its products and services include various current accounts and savings accounts (CASA), issuance of debit card and related transactions, facilitating domestic remittances, open banking functionality (via its API), withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System “AePS”) and cash management services. It also manages a large Business Correspondent network on behalf of other banks. The Company offers these products and services to its target market via a pan-India distribution network and proprietary technologies. It has operational presence to cover over 90% of districts (as of September 30, 2021).

The Company operates an asset light business model that principally relies on fee and commission based income generated from its merchant network and strategic commercial relationships. Each merchant serves the banking and financial needs of its community, which in turn forms the backbone of the Company’s assisted-digital ecosystem, which the Company calls “phygital” delivery model (i.e., a combination of physical and digital).

Who are the Promoters of the Company?

Fino Paytech Limited

Positives about the Company

  • Company's DTP (Distribution, Technology and Partnership) framework.
  • A technology focused business model with advanced digital platform.
  • Customer centricity and innovation at the core of business.
  • An asset light and scalable business model.
  • Operational experience and expertise.
  • Socially inclusive model with positive social impact.
  • Highly experienced and committed leadership team, supported by marquee investor base in our promoter and shareholder.

Who are its key competitors?

There are no listed peers in India

Why is the Company going public?

Given below are the objectives of the Company –

  • Augmenting Company’s Tier – 1 capital base to meet its future capital requirements
  • Achieve the benefits of listing the Equity Shares on the Stock Exchanges

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale

IPO Details

IPO Size ₹ 1200.29 Crore*
Offer Mix Fresh Issue ₹ 300 Crore + Offer For Sale ₹ 900.29 Crore
Price Band ₹ 560 - ₹ 577
Lot Size 25 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,425 (1 lot) | Max. ₹ 1,87,525 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar KFin Technologies Private Limited
Cut-off time for UPI Mandate Confirmation 03-Nov-2021 (up to 12:00 PM)
* at upper price band

Category Wise Availability*

QIB ₹ 897.97 Crore
(75% of Net Issue Size)
NIB ₹ 179.59 Crore
(15% of Net Issue Size)
Retail ₹ 119.73 Crore
(10% of Net Issue Size)
Employee Reservation Portion ₹ 3 Crore
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens October 29, 2021
IPO Closes November 2, 2021
Finalization of the basis of allotment November 9, 2021
Unblocking of funds / Initiation of refunds November 10, 2021
Credit of equity shares to Demat accounts November 11, 2021
Listing of equity shares November 12, 2021
Source: Company RHP
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