Fino Payments bank raises 539 crore rupees from anchored investors ahead of IPO

Fino Payments bank raises 539 crore rupees from anchored investors ahead of IPO

The Fino Payments Bank said on Thursday it had raised Rs 539 crore from key investors ahead of its initial share sale which will open for public subscription on Friday.

The company has decided to allocate a total of 93 37,641 shares to 29 main investors at Rs 577 each, for a total of Rs 538.78 crore, according to a circular posted on the ESB website.

Fidelity, HSBC Global, Pinebridge, Aditya Birla Sun Life Mutual Fund (MF), Tata Mutual Fund, SBI Life Insurance Company, Invesco, BNP Paribas and Société Générale, among others, received shares.

The initial public offer (IPO) includes a new issue of shares worth Rs 300 crore and a sale offer (OFS) of 15,602,999 shares by the promoter Fino Paytech.

The offer includes a reservation of Rs 3 crore of shares for eligible employees of the company. The issue, with a price range of Rs 560 to 577 per share, will open on October 29 and end on November 2.

At the high end of the price range, the initial stock sale is expected to earn 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 on a minimum of 25 shares and in multiples of 25 shares thereafter. The company said up to 75% of the total offering is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.

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

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

It occupies a strong leadership position in the financial technology industry with the largest network of micro ATMs in March 2021 with a market share of 55%, a merchant network of 6.4 lakh, and 25.7 lakh of accounts. banking.

Its turnover for FY21 was Rs 791 crore which increased at a CAGR of 29% over the past three years and the bank recorded a profit of Rs 20.5 crore during FY21. Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory Services are principally responsible for the issue.

Source: goodwordnews


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