Fino Payments Bank IPO: Here's all you need to know

Fino Payments Bank is set to make its debut on the bourses with its Rs 1,200.29-crore initial public offering (IPO) later this week on October 29.

Here are all the details that you need to know about the issue:

Open and close date: The offer will open for subscription on October 29 and the bidding will close on November 02. The anchor book, if any, will open for a day before the issue, i.e. October 28.

Price band: The price band for the payments bank has been fixed at Rs 560-577 per share having a face value of Rs 10 per share.

Lot size: Investors can bid for a minimum of 25 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,425 at the higher end of the price band. A retail investor can at max apply for 13 lots or 325 shares for Rs 1,87,525.

Issue size: The Rs 1,200.29-crore public offer comprises fresh issuance of equity shares of Rs 300 crore, and an OFS (offer for sale) of Rs 900.29 crore by shares by Fino Paytech.

Objective of issue: The bank will utilise the net proceeds from the fresh issue towards augmenting Bank’s Tier – 1 capital base to meet its future capital requirements and meet the expenses in relation to the offer.

What’s in it for retail investors: Not more than 75% of the total offer has been reserved for qualified institutional buyers, up to 10% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Fino Payments Bank offers a diverse range of financial products and services that are primarily digital and have a payments focus. Since 2017, it has grown its operational presence to cover over 90 per cent of districts as of September 2021. The company operates an asset-light business model that principally relies on fee and commission-based income generated from merchant networks and strategic commercial relationships.

On the financial front, the company reported a profit after tax of Rs 20.47 crore for the year ended FY21 compared to a loss of Rs 62.28 crore in FY19. Whereas its total revenues more than doubled to Rs 791 crore versus Rs 371.12 crore.

Book running lead managers and registrar to the IPO: The book running lead managers to the issue are Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory and Securities (India). The registrar to the issue is KFin Technologies.

Issue timeline: The issue is likely to finalize the basis of allotment by November 9 and the initialisation of refunds will take place by November 10. While the credit of equity shares to depository accounts of the allottee will be done on November 11. The bank is expected to make its stock market debut on November 12, 2021.