Fino Payments Bank sets IPO price band at ₹560-577 per share

Fino Payments Bank Ltd has established a price range of Rs.560-577 per share for its first public offering (IPO). Subscriptions for the issue will open on October 29 and finish on November 2.

Fino Paytech Ltd’s IPO comprises of a fresh issue of 300 crore and an offer for sale of up to 15.60 million shares. Fino Paytech currently owns 100 percent of the company.

The company intends to raise approximately 1,200 crore at the top of the price range. It intends to list on stock exchanges on November 12th.

Fino Payment Bank is sponsored by notable investors such as Blackstone, ICICI Group, Bharat Petroleum, and the International Finance Corporation (IFC).

The issue’s book running lead managers are Axis Capital, CLSA Capital, ICICI Securities, and Nomura Financial Advisory and Securities.

The fresh issue’s net proceeds will be utilised to boost the company’s Tier I capital base in order to meet future capital requirements. Its Tier I capital ratio was 56.25 percent in FY21.

It’s a fast-growing fintech firm that specialises in digital financial goods and services with a strong focus on payments.

As of March 2021, the platform had facilitated roughly Rs 434.96 million transactions with a gross transaction value of Rs 1.33 trillion.

The lender saw an increase in banking transactions as a result of government assistance disbursements as a result of the countrywide shutdown. It reported a high volume of transactions through micro-ATM and AePS networks, resulting in an increase in fee/commission income from such products, as well as facilitating the opening of CASA accounts as more people sought access to the Indian government’s relief allowance.

It opened 297,774 new CASA accounts in the quarter ended September 2020, a 20% increase over new CASA accounts opened in the quarter ended March 31, 2020. Deposits increased by 106.6 percent to Rs 2.43 billion in FY21.