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Fino Payments Bank Ltd's initial public offering will open on 29 October for subscription and close on 2 November.

The IPO consists of a fresh issue of 300 crore and offer for sale of upto 15.60 mln shares by Fino Paytech Ltd. currently, Fino Paytech holds 100% stake in the firm.

The firm plans to list on exchanges on 12 November. 

Fino Payment Bank is backed by marquee investors like Blackstone, ICICI Group, Bharat Petroleum and IFC, amongst others.

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

Net proceeds from the fresh issue will be used for augmenting its tier I capital base to meet future capital requirements. For FY 21 it’s tier 1 capital ratio was at 56.25%.

It’s a growing fintech company offering a diverse range of financial products and services that are primarily digital and have payments focus.

It’s platform facilitated around 434.96 million transactions and its gross transaction value was at 1.33 trillion as on March 2021.

Due to the countrywide lockdown, the lender observed a surge in banking transactions as a result of government relief disbursements. It recorded high levels of transactions through micro-ATM and AePS networks which consequently led to an increase in its fee/commission income derived from offering such products and also facilitated the opening of CASA accounts as more of the population wanted to gain access to the Indian Government’s relief allowance.

During the quarter ended September 2020, it opened 297,774 new CASA accounts, which was a 20% increase over new CASA accounts opened during the quarter ended March 31, 2020. Deposit for FY21 grew 106.6% to 2.43 billion.

It’s BC Banking operations also received an impetus with increased transactions in the regions where it operates driven by Indian Government’s efforts to support the more vulnerable within the population through certain grants. Disbursement of these grants was through the banking system, using the AePS and micro-ATM facilities for the withdrawal element of the transaction. It was well positioned, despite the closure of branches, to benefit due to our BC network and distribution network of merchants;

Currently it have approximately 17,269 active BCs across India. Additionally, it operates 54 branches and 143 Customer Service Points (“CSPs") as of March 2021.

For fiscal year 2021, the lender has total income of 791.03 crore against 691.40 crore a year ago. Net income for the period stood at 20.47 crore versus a loss of 32.04 crore last year.

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