Fino Payments Bank Ltd has set a price band at Rs 560-577 a share for its initial public offering (IPO). Earlier the lender said that its IPO will open on 29 October and close on 2 November.
The IPO consists of a fresh issue of Rs 300 crore and an offer for sale of up to 15.60 million shares by Fino Paytech Ltd. Currently, Fino Paytech holds 100% stake in the firm.
At the upper end of the price band, the firm plans to raise around Rs 1,200 crore. It plans to list on exchanges on 12 November
FIno Payment Bank is backed by marquee investors like Blackstone, ICICI Group, Bharat Petroleum and IFC, amongst others.
Axis Capital, CLSA Capital, ICICI Securities and Nomura Financial advisory and Securities are the book running lead managers to the issue.
Net proceeds from the fresh issue will be used for augmenting its Tier I capital base to meet future capital requirements. For FY21 its Tier I capital ratio was 56.25%.
It’s a growing fintech company offering a diverse range of financial products and services that are primarily digital and have payments focus.
Its platform facilitated around Rs 434.96 million transactions and the gross transaction value was Rs 1.33 trillion as on March 2021.
Due to the countrywide lockdown, the lender observed a surge in banking transactions as a result of government relief disbursements. It recorded high levels of transactions through micro-ATM and AePS networks which consequently led to an increase in its fee/commission income derived from offering such products and also facilitated the opening of CASA accounts as more of the population wanted to gain access to the Indian Government’s relief allowance.
During the quarter ended September 2020, it opened 297,774 new CASA accounts, which was a 20% increase over new CASA accounts opened during the quarter ended March 31, 2020. Deposit for FY21 grew 106.6% to Rs 2.43 billion.