The initial public offer (IPO) includes a fresh issue of equity shares worth Rs 300 crore and an offer-for-sale of 15,602,999 equity shares by promoter Fino Paytech, according to draft red herring prospectus (DRHP).
Proceeds from the fresh issue would be used towards augmenting the bank's tier-1 capital base to meet its future capital requirements.
The bank may consider a pre-IPO placement aggregating up to Rs 60 crore. If such placement is completed, the fresh issue size will be reduced.
According to merchant banking sources, the IPO is expected to fetch Rs 1,300 crore.
Fino Payments Bank or 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, a pioneer in technology enabled financial inclusion solutions. Fino Paytech 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 payments bank's platform has facilitated more than 434 million transactions with a gross transaction value of Rs 1.32 lakh crore in 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 2020-21 stood at Rs 791 crore that grew at a compound annual growth rate (CAGR) of 29 per cent in the last three years and the bank registered a profit of Rs 20.5 crore in the year.
Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services have been appointed as investment bankers to advise the bank on the IPO.
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