Fino Payments Bank IPO opens today; here’s what analysts are saying about it

• Fino Payments IPO opens today on Friday, October 29, and closes on November 1.
• The fintech company is looking to raise ₹1,200 crore through public listing with a price band of ₹560- 577 per share.
• The Navi Mumbai-based fintech company Fino Payments Bank will be the first payments bank to get listed on the stock exchanges, that too while making profits.

Initial public offering (IPO) of Navi Mumbai-based fintech company Fino Payments Bank opens on Friday and closes on November 1.

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. Paytm is looking to raise ₹18,300 crore ($2.4 billion) through the IPO that is scheduled to open on November 8 and end on November 10.

Fino is looking to raise ₹1,200 crore through public listing including ₹900 crore through an offer for sale of 1.56 crore shares and ₹300 fresh issue of 52 lakh shares. The price band of the IPO is set at ₹560-577 per share.

Here are some important details of the IPO:

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. Going forward, India presents a huge opportunity for growth of fintechs. There will be huge growth potential for players in payments, lending, wealth, Insurance, etc. segments. We believe Fino Bank is one of the key beneficiaries of opportunities in the sector,” said analysts at Religare Broking.

However, some analysts are cautious towards the IPO considering the stiff competition in the industry.

“The company exists in a stiff competitive environment where companies like PayTM Payments Bank and India Post Payments bank exist and outperform in many aspects. We thus believe that the current growth momentum is difficult to sustain in the long term. Hence we give an “AVOID” rating to this IPO,” said a report by BP Equities.

Meanwhile, Jyoti Roy of Angel One said that, “Despite strong growth prospects, we believe that valuations do not justify the premium and hence we have a NEUTRAL recommendation to the IPO.”

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