Fino Payments Bank IPO allotment tomorrow, investors had oversubscribed by over 2 times
- Fino Payments Bank is likely to announce its share allotment status on November 9.
- The public issue of the Mumbai-based fintech company Fino Payments Bank has been subscribed 2.03 times on the third and final day of the issue on November 2.
- Check out the latest news and updates on Business Insider.
AdvertisementNavi Mumbai-based fintech company Fino Payments Bank is likely to announce the allotment status of its initial public offering (IPO) on November 9.
The company received good demand from investors, who have oversubscribed the IPO by 2.03 times. The portion reserved for retail investors was oversubscribed by 5.92 times on the last day of the IPO bidding process.
However, demand from non-institutional investors was not that good as the portion reserved for non-institutional investors was subscribed just 0.21 times.
|Qualified institutional investors||1.65 times|
|Non-institutional investors||0.21 times|
|Retail investors||5.92 times|
The IPO was open for subscription from October 29 to November 2 with a price band of ₹560-577 per share. The company is looking to raise ₹1,200 crore through public listing including ₹900 crore through an offer for sale and ₹300 crore through fresh issue of shares.
The company claims to be the first profitable player in the payments bank space to hit the Indian stock market. Paytm is another payments bank firm in line to get listed soon.
The bank plans to utilise the net proceeds from the fresh issue towards augmenting its tier-I capital base to meet its future capital requirements.
Further, analysts are positive on the fintech industry and believe they are poised to grow in the future.
“Fintech companies' demand is poised for growth on the back of rising internet penetration, higher disposable income, development of technology, low-cost infrastructure, government initiatives like UPI, etc. We believe Fino Bank is one of the key beneficiaries of opportunities in the sector,” said analysts at Religare Broking.
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