Fino Payments Bank files papers with Sebi for IPO
2 min read 31 Jul 2021, 05:34 PM ISTThe IPO consists of a fresh issue of ₹300 crore and an offer for sale of up to 15.60 mln shares by Fino Paytech
PremiumMumbai: Fino Payments Bank has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds via an initial public offering (IPO).
Fino Payments Bank is backed by marquee investors like Blackstone, ICICI Group, Bharat Petroleum and IFC, amongst others.
The IPO consists of a fresh issue of ₹300 crore and an offer for sale of up to 15.60 mln shares by Fino Paytech Ltd.
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 FY21 its 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 a payments focus.
Its products and services include various current accounts and savings accounts, issuance of debit card and related transactions, facilitating domestic remittances, open banking functionality (via its Application Programming Interface (API), withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System “AePS") and cash management services (CMS).
Its platform facilitated around 434.96 million transactions and its gross transaction value was at ₹1.33 trillion as of March 2021.
It operates an asset-light business model that principally relies on fee and commission-based income generated from its merchant network and strategic commercial relationships.
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 people wanted to gain access to the government’s relief allowance.
During the quarter ended September 2020, it opened 297,774 new CASA accounts, 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.
Currently, it has approximately 17,269 active business correspondents across India. Fino Payments operates 54 branches and 143 customer service points as of March 2021.
For fiscal year 2021, the lender had 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.
