Fino Payments Bank IPO

 

Fino Payments Bank was founded on April 4, 2017. ICICI Bank, BPCL, and Blackstone have all invested in IFC Fino Payments Bank, which has an exceptional financial and distribution track record. Every year, this strong network experiences amazing growth. Fino Payments Bank IPO will hit the market on 29 October 2021.

About

Fino Payments Bank is Digital Banking Partner for thousands of Indians. They understand the customer and what they want from a bank, and it is their constant goal to give an outstanding banking environment to customers through easy solutions and services that can be accessible at any time and from any location.

With approximately 6.41L banking facilities, 54 Bank Branches, and 143 Customer Service Points, they are available in 94 percent of India’s regions.

They’re a fast-growing fintech firm that specialises in digital financial products and services with a strong focus on payments.

Across a pan-India distribution network and proprietary technology, they provide various solutions and services to their target market.

Business Model

They have a low-asset company model that relies primarily on fee and commission income from their merchant network and targeted commercial agreements.

Each merchant caters to its community’s banking and financial needs, forming the backbone of their assisted-digital ecosystem, also known as their “phygital” delivery model (a mix of physical and digital).

The merchant’s use of technology, as well as their use of analytics on the data we collect, improves the merchant’s capacity to cross-sell third-party items to their existing clients, thus raising revenue and allowing them to further customise overall product and solution offerings.

Approach

While innovation is always present, technology and consumer trust are at the heart of all they do and serve as the foundation for their success.

The entirety of their business model They have emphasised and will continue to emphasise their focus on “emerging India,” which caters to a population that is rapidly growing.

They feel it represents a significant market opportunity that has been largely missed by the majority of India’s big financial institutions.

Poor levels of monetary knowledge and technology use, as well as a lack of financial resources, characterise this segment of Indian society.

It is sometimes referred to as the “unserved and underserved” because it does not have exposure to even minimum banking services.

Products & Services

Numerous current and savings accounts (“CASA”), the issuance of debit cards and linked transactions, supporting domestic remittances, open banking features (via our Application Programming Interface (“API”)), withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System “AePS”), and cash management services (“CMS”) are among their products and services.

Their retailers also use their existing client connections in their communities to help us cross-sell additional financial products and services like third-party gold loans, insurance, bill payments, and recharges.

On behalf of other banks, they also operate a vast BC network. The MEITY ranked them third among banks in 2020 in terms of supporting digital transactions.

Fino Payments Bank IPO

Fino Payments Bank, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 1300.00 Crore on 30 July, 2021.

There will be fresh issue of 300.00 Crore & OFS (Offer for sale) up to 15,602,999 equity shares from existing Promoters mentioned in the DRHP of the company.

They got the approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 04 Oct 2021.

Pre- IPO Placement

A pre-IPO placement of up to Rs 60 crore may be considered by the bank. The size of the new issue will be reduced if this placement is performed.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,010.29	624.00	684.07
Total Revenue		791.03	691.40	371.12
Profit After Tax		20.47	(32.04)	(62.38)

Basic and Diluted Earnings Per Share (EPS)

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2019	2.62	2.62	1
Financial Year 2020	(4.11)	(4.11)	2
Financial Year 2021	(8.00)	(8.00)	3
Weighted Average	(1.39)	(1.39)

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

The following business characteristics, they feel, enable them to compete effectively in the industry:

• Their DTP structure.
• A technology-driven company model built on a cutting-edge digital network.
• At the essence of business is client centricity and creativity.
• A business model that is asset-light and extensible.
• Experience and competence in the field of operations.
• Model that is socially inclusive and has a beneficial social impact.
• Their leadership team is very skilled and devoted, and they have a strong investor base in their promoters and shareholders.

Fino Payments Bank IPO Peer Comparison

There are no publicly traded firms in India with a business portfolio equivalent to theirs and a scale of operations similar to theirs. However, many companies are also filed DHRP who are in similar industry, we may witness their ipos in the next month.

Fino Payments Bank IPO Details

IPO Opening Date	29 October 2021
IPO Closing Date	02 November 2021
Issue Type	Book Built
Face Value	10 per  share
IPO Price	560 to 577 per equity share
Market Lot	25
Min Order Quantity	25
Listing At	BSE, NSE
Issue Size	1300 Cr.
Fresh Issue	300.00 Cr.
Offer for Sale	15,602,999 Equity shares

Fino Payments Bank IPO Dates

Fino Payments Banks IPO opening date is 29 October 2021, and the closing date 02 November 2021. The issue may list on 12 November 2021.

IPO Open Date	29 October 2021
IPO Close Date	02 November 2021
Basis of Allotment Date	09 November 2021
Initiation of Refunds	10 November 2021
Credit of Shares to Demat Account	11 November 2021
IPO Listing Date	12 November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum level of 1 lot, based on availability, for every shareholder.

Fino Payments Bank IPO Allotment 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 Fino Payments Bank IPO.

Fino Payments Bank IPO GMP ( Fino IPO GMP)

Fino Payments Bank IPO Grey Market Premium is INR 0.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
11 November 2021	No Trade	No Trade	No Trade
10 November 2021	No Trade	No Trade	No Trade
09 November 2021	No Trade	No Trade	No Trade
08 November 2021	No Trade	No Trade	No Trade
07 November 2021	No Trade	No Trade	No Trade
06 November 2021	No Trade	No Trade	No Trade
05 November 2021	No Trade	No Trade	No Trade
04 November 2021	No Trade	No Trade	No Trade
03 November 2021	No Trade	No Trade	No Trade
02 November 2021	10	1100	100
01 November 2021	21	1300	100
31 October 2021	39	2400	200
30 October 2021	35	2600	250
29 October 2021	48	2100	200
28 October 2021	53	1700	150
27 October 2021	57	2800	300
26 October 2021	55	2600	250
25 October 2021	50	2200	200
24 October 2021	60	1500	150
23 October 2021	70

Fino Payments Bank IPO Review

Fino Payments Bank IPO is Good or bad, it totally depends on your view. It is a company which you should subscribe to for the long term only. If you are interested only in listing gain then you might face volatility.

We will advise only risk taking traders to apply for listing gain or people who are not willing to take risk should avoid this IPO for listing gain.

Fino Payments Bank IPO Risk

• The COVID-19 epidemic has had and may continue to have negative impacts for their company.
• They engage in fee and commission-based operations, and their financial performance could be impacted if they are unable to collect revenue from these sources.
• They rely heavily on their information technology platforms, and any flaw or failure in such systems, as well as a data breach, could have a negative impact on their business.
• They have introduced new products and services and will continue to do so, but they cannot guarantee that such products and services will be successful today or in the future.
• Their industry is extremely competitive, and their growth strategy is contingent on their ability to compete successfully.

Other Threats

• They rely on brand recognition, and failing to maintain and improve brand awareness would have a negative effect on the business.
• Their KMP and senior top management, and their ability to attract, develop, and retain such professionals, are important to the success of their company operations.
• Negative outcomes in judicial and arbitration processes may have an effect on the company, credibility, and financial performance.
• After the Offer has completed, their Promoter will continue to exert major control over them.
• In specific instances, RBI has the authority to dismiss any employee or managerial individual, as well as to supersede their Board of Directors.
• In the financial years 2019 and 2020, they made losses.

DTP Framework

Our unique DTP system facilitates them to easily serve their target market and is designed to address three important issues connected with serving such a market:

1. Scale – the enormous time and financial investment required to create and deploy the infrastructure essential to achieve the requisite geographic reach.
2. Service – the high levels of upfront and ongoing customer service necessary to establish and sustain confidence in all of the areas in which we operate and target.
3. Sustainability – The specialised range of products required to fulfil the needs of their target market is called sustainability. This framework promotes a fluid interplay by creating a network effect.

Technology

Throughout their company, they have invested in technology and will continue to do so. This investment was undertaken with the purpose of providing their customers with an unrivalled user experience and enabling their merchants to conduct more transactions.

As a result, they value elegance in their service and product design as well as rapid deployment, both of which they believe are demonstrated in their Bpay app, the ease with which they onboard merchants via e-KYC, and their Cash Bazzar initiative, which assists clients in locating merchant locations and directing them to the nearest merchant outlet.

Their in-house technical expertise and application-led innovation culture provide a compelling value proposition.

Fino Payments Bank IPO Brokerage views

• 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

Fino Payments Bank IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
29 October 2021	1	0	0.05	2.73	0.25	0.51
01 November 2021	2	0	0.10	4.65	0.56	0.87
02 November 2021	3	1.65	0.21	5.92	0.93	2.03

Management

They benefit from Mr. Gupta’s operational knowledge and expertise earned during his time as a key employee of Fino PayTech Limited, as the “FINO” brand existed prior to the start of their commercial operations.

Their marketing strategy, in particular, is a product of & and a result of this collective experience. Mr. Gupta is also backed up by their Key Management Personnel (KMP), which includes Ketan Dhirendra Merchant (CFO), Ashish Ahuja (COO), and Shailesh Pandey, among others (CSO).

They feel that their deep industry understanding comes from a combination of their experienced management team and their ability to serve a big number of clients throughout a wide geographic area.

Promoter

1. Fino PayTech Limited

Promoter Holding

Pre Issue Share Holding	100%
Post Issue Share Holding

Fino Payments Bank IPO Prospectus