Fino Payments Bank lists 5% below IPO price

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Fino Payments Bank lists 5% below IPO price
Rishi Gupta, managing director and chief executive (CEO) of Fino Payments BankFino Payments Bank/ BI India

  • It is the first payments bank to get listed on the stock exchange and it is profitable too.
  • The company’s public issue was oversubscribed by 2x as retail investors took a lead.
  • Fino Payments Bank has raised ₹1,200 crore through this public issue.
Navi Mumbai-based fintech company Fino Payments Bank made its debut on the stock exchange on Friday, November 12, as its shares opened at ₹548 on the BSE. This is a premium of -5%.

Fino Payments Bank is the first payments bank making profits to get listed on the stock exchange.

The company’s shares were trading at ₹528 at 12:25 p.m, leading to a market cap of ₹4,393 crore.
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The price of Fino Payments Bank’s shares was fixed at ₹560-577 during the public issue.

Fino Payments Bank — which comes under the parent entity Fino Fintech Private Limited — received a good response from the investors during its IPO. The retail investors’ portion of this public issue was oversubscribed by 5.92 times on the last day of IPO bidding, on November 2.

The demand from non-institutional investors, which includes companies as well as high net-worth individuals (HNI), was low. The portion reserved for them was only subscribed 21%.
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InvestorsStatus
Qualified Institutional Investors1.64 times
Non-institutional investors 0.21 times
Retail investors 5.92 times
Overall2.03 times
Source: Stock Exchange

Founded in 2007 as Fino Fintech Foundation Limited, the company rebranded itself to Fino Fintech Private Limited in 2015.

The Reserve Bank of India (RBI) granted in-principle approval to the company to establish a payments bank in 2015 but the payments bank commenced operations in June 2017.
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Rishi Gupta is the managing director and chief executive (CEO) of Fino Payments Bank. He was one of the founding members of Fino Paytech.

Fino Payments Bank has raised ₹1,200 crore through this public issue. Of this, $300 crore was raised by the company as a fresh issue and the remaining ₹900 crore was raised through an offer for sale by existing stakeholders.

The company will use the net proceeds from the fresh issue to augment its tier-I capital base to meet its future capital requirements.
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