Fincare Small Finance Bank is an urban and semi-urban based lender with two main target markets: rural individuals seeking microfinance loans and semi-urban customers seeking mortgage loans, like loan against land, affordable housing, & gold. Fincare Small Finance Bank IPO will hit market in December 2022.
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About Fincare Small Finance Bank
Fincare Small Finance has been a lender of microfinance loans to female groups for income generation activities since 2007. After obtaining the final license from the RBI under Section 22 of the Banking Regulation Act, 1949, Fincare Small Finance Bank began bank transactions on July 21, 2017.
Fincare Small Finance Bank facilitates financial inclusion for the pyramid’s underbanked base, large retail, and micro and small business segments.
It assists customers in 19 regions including Andhra Pradesh, Chattisgarh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and the Union Territory of Puducherry, with 500+ banking branches and 7910 staff.
In a high-growth, challenging, and creative job climate, the Bank provides a variety of employment options.
Services
With more than 15 years of expertise in the microloan industry, they have a thorough understanding of the unbanked & underbanked consumer categories, particularly rural customers.
As of March 31, 2022, we had 4.03 million deposit accounts (including 0.24 million 101 accounts), covering both existing microloan customers & new customer segments (especially from urban areas)
Savings Accounts, Current Accounts, Fixed Deposits, NRI Fixed Deposits and Recurring Deposits, Micro Loans, Cash Overdraft, Loans against Assets, Loans Toward Gold, Institutional Finance, & Two-Wheeler Loans are among the smart banking services offered by Fincare Small Finance Bank.
True North, TA Associates, Tata Opportunities Fund, Leapfrog Investments, SIDBI, Kotak Mahindra Life, and Edelweiss Tokio Life, along many have invested in Fincare Business Services Limited, their holding company.
Jonurey
Their Bank was registered as an NBFC-MFI in 2013 and began operating as an NBFC-ND in 2010 under the name “Disha Microfin Limited.”
After acquiring the microfinance activities of FFSPL (which began microfinance operations in 2007), their bank changed its name to Fincare Small Finance Bank in 2016 after receiving the RBI In-Principle Approval.
While they remain dedicated to meeting the credit needs of microloan borrowers, their conversion to an SFB in 2017 gave them the chance to expand their customer base by creating new product categories.
They have developed new secured loan products, which they mostly offer in semi-urban areas, by utilizing their knowledge of unbanked and underbanked customers. Although they still have a robust organizational structure for microloans.
Fincare Small Finance Bank IPO
Fincare Small Finance Bank Limited, headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 625 Crore and 17,000,000 Equity Shares on 06 Aug 2022.
The offer includes a fresh issue of INR 500 Crore and there is offer for sale (OFS) of 17,000,000 Equity Shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement INR 125 crores in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | |||
| Total Assets | 10,905.90 | 7,967.07 | 7,117.13 | ||
| Total Revenue | 1,647.65 | 1,376.71 | 1,214.09 | ||
| Profit After Tax | 8.87 | 113.14 | 143.45 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 7.03 | 7.03 | 3 |
| Financial Year 2021 | 5.55 | 5.55 | 2 |
| Financial Year 2022 | 0.38 | 0.38 | 1 |
| Weighted Average | 3.21 | 3.21 | |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
Fincare Small Finance Bank limited feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:
- Automated systems and digital banking are driving a customer-centric strategy.
- With a strong focus on financial inclusion, a rising urban presence, and a strong rural franchise.
- Low-cost, multi-channel distribution network having a wide geographic reach.
- A rapidly expanding solid deposit base and an expanding CASA franchise.
- Dependable and skilled professional leadership group.
- Strong risk management practices that result in good asset quality.
- Strong operational and financial performance history.
Fincare Small Finance Bank Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Equitas Small Finance Bank Limited | 18.48 |
| 2 | 10 | Ujjivan Small Finance Bank Limited | NM** |
| 3 | 10 | Credit Access Grameen Limited | 43.63 |
| 4 | 10 | Spandana Sphoorty Financial Limited | 40.76 |
| 5 | 10 | Bandhan Bank Limited | 364.29 |
| 6 | 10 | AU Small Finance Bank Limited* | 34.14 |
| 7 | 10 | Suryoday Small Finance Bank | NM** |
- All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
- The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on (August 3, 2022) by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.
Fincare Small Finance Bank IPO Details
| IPO Opening Date | December 2022 |
| IPO Closing Date | December 2022 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 650 cr. |
| Offer for Sale | 17,000,000 Equity shares |
Fincare Small Finance Bank IPO Tentative Date
Fincare Small Finance Bank IPO open date is December 2022, and the close date is December 2022. The issue may list in December 2022.
| IPO Open Date | December 2022 |
| IPO Close Date | December 2022 |
| Basis of Allotment Date | December 2022 |
| Initiation of Refunds | December 2022 |
| Credit of Shares to Demat Account | December 2022 |
| IPO Listing Date | December 2022 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability |
Fincare Small Finance Bank Limited IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Fincare Small Finance Bank IPO.
Fincare Small Finance Bank IPO GMP
Fincare Small Finance Bank Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
Fincare Small Finance Bank Limited IPO Review
Fincare Small Finance Bank Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Fincare Small Finance Bank IPO is good or bad.
Fincare Small Finance Bank Limited IPO Risk
- Due to their short operational histories, companies might not be able to successfully compete in their more recent product categories, and it might be challenging to assess their business & anticipated operating outcomes based solely on past performance.
- Their financial, accounting, administrative, & technological infrastructure, as well as our business and reputation, could suffer if they are unable to manage the growth brought on by their expansion.
- The RBI has previously provided them with observations as a result of their on-site inspections.
- They heavily rely on their microloan business, which has its own special risks. As a result, they may see an increase in the number of non-performing loans, as well as corresponding provisions and write-offs, which would materially harm their company.
Other Threats
- They are exposed to the hazards of having geographically concentrated operations since a sizable number of their banking outlets are located in and a sizable portion of their advances originated from four states.
- They were exposed to the hazards associated with rural economies because a sizable amount of their loan portfolio originated in rural areas.
- Their services could be disrupted by fraud, cyberattacks including hacking, phishing, and trojans, as well as the loss of private corporate data or customer information.
- Their company is exposed to hazards associated with interest rates & investments.
- Their wide network, numerous banking locations, & reliance on outside service providers, such as business correspondents running banking locations, could expose them to risks that could materially harm their business.
Fincare Small Finance Bank Limited IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Fincare Small Finance Bank IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Fincare Small Finance Bank Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| November 2022 | 1 | |||||
| November 2022 | 2 | |||||
| November 2022 | 3 |
Fincare Small Finance Bank Limited Management
Their Board is made up of knowledgeable individuals with relevant experience who are well-versed in the banking & financial sector. Seven of their directors are independent, and they have put in place an independent of management corporate governance strategy to promote good corporate governance standards & strong monitoring.
Their MD & CEO and CFO have both worked for the Fincare group for 10 and 13 years, respectively, & both have expertise in the financial services sector.
A leadership team of 20 people & an executive management team at the next level with more than 30 people make up their strong and skilled management team.
Their management team is made up of people with a variety of experiences, including entrepreneurs & workers in the financial services sector.
Fincare Small Finance Bank IPO Promoters
- Fincare Business Services Limited
Promoter Holding
| Pre Issue Share Holding | 78.58% |
| Post Issue Share Holding |
Fincare Small Finance Bank IPO Prospectus
Contact Details
FINCARE SMALL FINANCE BANK LIMITED
301-306, 3rd Floor, ABHIJEET -V, Opp. Mayor’s Bunglow,
Law Garden Road, Mithakhali Ahmedabad Ahmedabad GJ 380006 IN
Tel: +91 (0) 22 6769 2500
Fax: +91 (0) 22 6630 6510
Email: [email protected]
Website: www.fincarebank.com
Registrar
KFin Technologies Private Limited
Selenium, Tower B, Plot No. – 31 and 32
Financial District Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032 Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- ICICI Securities Limited
- IIFL Securities Limited
- Ambit Capital Private Limited
We hope we are able to answer all you questions about Fincare Small Finance Bank IPO. If you don’t have a Demat account open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Fincare Small Finance Bank IPO Opening Date?
Fincare Small Finance Bank IPO will open in December 2022.
Fincare Small Finance Bank IPO Listing Date?
Fincare Small Finance Bank IPO will list in December 2022.
Fincare Small Finance Bank IPO GMP Today?
Fincare Small Finance Bank IPO Grey Market Premium is INR 0.
Fincare Small Finance Bank IPO Allotment Date?
Fincare Small Finance Bank IPO basis of allotment will be in December 2022.
Lot size for Fincare Small Finance Bank IPO?
Lot size for IPO is 0 to 0.
