You are here: Home » Markets » News
Business Standard

Fino Payments Bank files papers with Sebi for Rs 1,300-crore IPO

Fino Payments Bank has filed preliminary papers with markets regulator Sebi to raise an estimated Rs 1,300 crore through an initial share-sale.

Topics
Fino Payments Bank | IPOs

Press Trust of India  |  New Delhi 

IPO
Photo: Shutterstock

has filed preliminary papers with regulator Sebi to raise an estimated Rs 1,300 crore through an initial share-sale.

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.

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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, July 31 2021. 19:23 IST
RECOMMENDED FOR YOU
.