scorecardFino Payments Bank will be the first fintech startup in India to get listed on the bourses and it is profitable
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Fino Payments Bank will be the first fintech startup in India to get listed on the bourses and it is profitable

Fino Payments Bank will be the first fintech startup in India to get listed on the bourses and it is profitable
Stock Market4 min read
  • Fintech firm Fino Payments Bank will open its IPO on October 29 and close on November 2.
  • The firm is looking to raise ₹1,200 crore through the public listing including an offer for sale worth ₹900 crore.
  • The company claims to be the first profitable payments bank to hit the Indian stock market.
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.

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. Although Paytm has received SEBI’s nod, it is yet to announce dates to launch its initial public offering (IPO).

“We are the only scheduled payment bank, which is profitable, we have set up the bank on very low capital,” said Rishi Gupta, managing director and chief executive officer (CEO) of the payment bank.

Paytm is one strong competitor for the firm, but its drawback is it is still making losses while Fino Payments Bank has turned profitable in FY21. Paytm reported a loss of ₹1700 crore in FY21.

Fino Payments Bank has been operational for over four years now. The payment bank offers a diverse range of financial services including current account and savings account (CASA), micro ATMs, Aadhaar enabled payment system (AePS) transactions, domestic remittances etc., that are primarily digital.


The bank operates through over 6.41 lakh merchants’ network, 143 customer service points and 54 branches across pan India. The bank focuses on the unserved and underserved population, especially in rural and semi-urban areas where financial inclusion is required.

The company earns revenue through fees and commissions from its merchant network and strategic commercial relationships.

Although Fino is a profitable firm, it has a long way to go in comparison to market leader Paytm Payments Bank that has 100 times more merchant clients.
Particulars

Fino Payments Bank

Paytm Payments Bank

Total merchants

6.41 lakh

6.4 crore

Total deposits

₹2,870 crore

₹5,200 crore

Total income

₹790 crore

₹2,800 crore


Further, analysts say that Fino Payments Bank could be eligible for a small finance bank licence within one year, which would open more growth opportunities.

A report by B & K Securities said that, “The bank has already completed over 4 years as a payment bank and hence it could become eligible for a small finance bank licence within next 1 year, which would open altogether different growth avenues.”

Fino Payments Bank IPO to open this week

The IPO of the company will open on October 29 and close on November 2.

The company 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.

Promoter Fino Paytech will sell 52 lakh shares in the IPO. 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.
Issue details


Price band

₹560 to ₹577

IPO open date

October 29

IPO close date

November 2

Allotment date

November 9

Initiation of refunds

November 10

Credit of shares to demat account

November 11

IPO listing date

November 12

Minimum lot

25


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