IPO: This Payment Bank To Raise Around Rs 1300 crore, Public Issue Opens On Oct 29

The capital markets regulator, the Securities and Exchange Board of India (SEBI), has approved Fino Payments Bank's Rs 1,300-crore initial public offering (IPO). Fino Paytech Ltd, which owns 100 percent of the company, will issue a fresh issue of Rs 300 crore and sell up to 15.60 million shares in the IPO.

After Nykaa's Rs 5,352-crore IPO, the Fino Payment initial public offering (IPO) will be the second to open for subscription this week. On November 12th, the company intends to list on stock exchanges.

The offer will be closed on November 2 by the company, which employs an asset-light business model that primarily relies on fee and commission-based income produced by its merchant network and key commercial connections.

Fino Payments Bank intends to use the proceeds from its new offering to boost its Tier-I capital base in order to meet future capital needs.

Fino Payment Bank is supported by major investors such as Blackstone, ICICI Group, Bharat Petroleum, and the International Finance Corporation (IFC).

The issue's book running lead managers are Axis Capital, CLSA Capital, ICICI Securities, and Nomura Financial Advisory and Securities.

The fresh issue's net proceeds will be utilized to supplement the company's tier I capital base in order to meet future capital requirements. It is tier 1 capital ratio was 56.25 percent in FY 21.

There are roughly 17,269 active BCs in India right now. As of March 2021, it also had 54 branches and 143 customer service points.

The lender earned Rs 791.03 crore in the fiscal year 2021, up from Rs 691.40 crore the previous year. The net income for the period was Rs 20.47 crore, compared to a loss of Rs 32.04 crore the previous year.