Fino Payments Bank files papers for ₹1,300 crore IPO
Canva/Business Insider India
Finohas filed its DRHP with SEBI today.
- The IPO includes fresh issue of ₹300 crore
- The bank may consider a pre-IPO placement aggregating up to ₹60 crore.
AdvertisementFino Payments Bank has filed preliminary papers with markets regulator Securities and Exchange Board of India (SEBI) to raise an estimated ₹1,300 crore through an initial share-sale. The initial public offer (IPO) includes a fresh issue of equity shares worth ₹300 crore and an offer-for-sale of 15,602,999 equity shares by promoter Fino Paytech, according to draft red herring prospectus (DRHP).
Proceeds from the fresh issue would be used towards augmenting the bank's tier-1 capital base to meet its future capital requirements.
The bank may consider a pre-IPO placement aggregating up to ₹60 crore. If such placement is completed, the fresh issue size will be reduced.
According to merchant banking sources, the IPO is expected to fetch ₹1,300 crore.
Fino Payments Bank or FPBL is a scheduled commercial bank serving the emerging India market with its digital based financial services.
The company is a fully-owned subsidiary of Fino Paytech, a pioneer in technology enabled financial inclusion solutions. Fino Paytech is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (
Over the last few years, FPBL has witnessed a steep surge in transaction volumes on the back of digitization and proliferation of its banking points.
The payments bank's platform has facilitated more than 434 million transactions with a gross transaction value of ₹1.32 lakh crore in financial year 2020-21, as per the draft papers.
It has a strong leadership position in the fintech industry having the largest network of micro ATMs as of March 2021 with a market share of 55 per cent, a robust merchant network of 6.4 lakh and 25.7
Its revenue for 2020-21 stood at ₹791 crore that grew at a compound annual growth rate (CAGR) of 29 per cent in the last three years and the bank registered a profit of ₹20.5 crore in the year.
AdvertisementAxis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services have been appointed as investment bankers to advise the bank on the IPO.
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