Fino Payments Bank IPO to open on Oct 29; price band set at Rs 560-577

Fino Payments Bank on Tuesday said it has fixed a price band of Rs 560-577 a share for its Rs 1,200-crore initial public offering, which will open on October 29.

The three-day initial share-sale will conclude on November 2, the company announced in a virtual press conference.

The initial public offer (IPO) includes a fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.

The offer includes a reservation of Rs 3 crore worth of shares for the company's eligible employees.

At the upper end of the price band, the initial share-sale is expected to fetch Rs 1,200.3 crore.

Proceeds from the fresh issue would be used towards augmenting the bank's Tier-1 capital base to meet its future capital requirements.

Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter.

The company said that up to 75 per cent of the total offer has been reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 per cent for retail investors.

Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the book running lead managers to the issue.

Fino Payments Bank (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. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).

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 payment bank's platform has facilitated more than 434 million transactions with a gross transaction value of Rs 1.32 lakh crore in the 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 lakh bank accounts.

Its revenue for FY21 stood at Rs 791 crore that grew at a CAGR of 29 per cent in the last three years and the bank registered a profit of Rs 20.5 crore in FY21.