Fino Payments Bank IPO to open on October 29, price band Rs 560-577 a share

The offer consists of Rs 300 crore fresh fund raise and Rs 900 crore secondary share sale by promoter Fino Paytech

Fino Payments Bank’s Rs 1,200-crore initial public offering (IPO) will open for subscription on October 29 and close on November 2. The bank has set the price band at Rs 560-577 per share. The IPO comprises Rs 300 crore of fresh fund raise and Rs 900 crore of secondary share sale by promoter Fino Paytech. The bank will use the fresh proceeds to augment its tier-1 capital base to meet its future capital requirements.

Fino Payments Bank’s parent Fino Paytech counts BPCL (22.9 per cent stake), Blackstone (15.1 per cent), ICICI Prudential Life (9.1 per cent), Intel Capital (5.7 per cent) as its shareholders.

Fino Paytech currently holds 100 per cent stake in Fino Payments Bank. Post the IPO, its stake is likely to fall to 70 per cent. At the top-end of the price band, Fino Payments Bank will have a market cap of Rs 4,800 crore.

This will be the first IPO of a payments bank. PayTM, which too has a payments bank license, is expected to launch its IPO soon.

Bulk of Fino Payments Bank revenues come from fee income and it follows an asset-lite model. It offers services like remittances, micro-ATM, business correspondent (BC) banking, Aadhaar Enabled Payment System (AEPS) and third party products distribution.

In FY21, Fino Payments Bank reported gross revenues of Rs 780 crore and net profit of Rs 20.5 crore.