The Securities and Exchange Board of India (Sebi) has approved the initial public offerings (IPOs) of Fino Payments Bank Ltd and Popular Vehicles and Services Ltd.
On 31 July and 6 August, Fino Payments Bank and Popular Vehicles had, respectively, filed their IPO draft papers. Fino Payments Bank is backed by marquee investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corp.
The Fino Payments Bank IPO consists of a fresh issue of ₹300 crore and an offer for sale (OFS) of up to 15.60 million shares by parent firm Fino Paytech Ltd.
Net proceeds from the fresh issue will be used for increasing its Tier I capital to meet capital requirements. For FY21 its Tier I capital ratio was 56.25%.
Axis Capital, CLSA Capital, ICICI Securities and Nomura Financial advisory and Securities are the book running lead managers to the issue.
The Popular Vehicles IPO comprises a fresh issue of ₹150 crore and an OFS of up to 4.27 million shares by Banyantree Growth Capital, which has a 34% stake in the firm.
Axis Capital, DAM Capital Advisors and Centrum Capital are the book running lead managers to the issue.
The proceeds of the ₹120-crore worth IPO will be used to repay debt, including working capital loans raised by the firm and its arms PAPL, PMMPL and VMPL. As of June 2021, its debt stood at ₹353.84 crore on a consolidated basis.
The firm is a leading diversified automotive dealership in India in terms of revenue.