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Fino Payments Bank raises Rs 539 crore from anchor investors ahead of Ipo

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Fino Payments Bank raises Rs 539 crore from anchor investors ahead of Ipo

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Fino Payments Bank said Thursday that it has raised Rs 539 crore from anchor investors ahead of its initial share sale that opens for public subscription on Friday.

The company has decided to allocate a total of 93,37,641 equity shares to 29 anchor investors at Rs 577 each, which adds up to Rs 538.78 crore, according to a circular uploaded to the BSE website.

Shares have been awarded to Fidelity, HSBC Global, Pinebridge, Aditya Birla Sun Life Mutual Fund (MF), Tata Mutual Fund, SBI Life Insurance Company, Invesco, BNP Paribas and Societe Generale, among others.

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The initial public offering (IPO) includes a new equity share issue worth Rs 300 million and an offer to sell (OFS) of 15,602,999 equity shares by promoter Fino Paytech.

The offer includes a reserve of shares worth Rs 3 crore for the company’s eligible employees. The issue, with a price band of Rs 560-577 per share, will open on October 29 and conclude on November 2.

At the upper end of the price band, the initial share sale is expected to reach Rs 1,200.3 crore. The proceeds from the new issue would be used to increase 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 percent of the total offering has been reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.

Fino Payments Bank or FPBL is a scheduled commercial bank serving the emerging Indian market with its digital-based financial services. The company is a wholly owned subsidiary of Fino Paytech, a pioneer in technology-enabled financial inclusion solutions. Fino Paytech is backed by investors such as Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).

In recent years, FPBL has witnessed a sharp increase in transaction volumes due to digitization and the proliferation of its banking points. The payment bank platform has facilitated more than 434 million transactions with a gross transaction value of Rs 1.32 lakh crore in the 2020-21 financial year, according to preliminary documents.

It has a strong leadership position in the fintech industry with the largest network of micro ATMs as of March 2021 with a 55 percent market share, a 6.4 lakh business network, and 25.7 lakh bank accounts.

Its revenue for fiscal year 21 was Rs 791 crore which grew at a CAGR of 29 percent over the past three years and the bank posted a profit of rupees 20.5 crore in fiscal year 21. Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the main managers of the issue.

(Edited by : Jomy Jos Pullokaran)


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Fino Payments Bank raises Rs 539 crore from anchor investors ahead of Ipo

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