India1 Payments IPO

 

India1 Payments Limited is the biggest independent non-bank ATM operator (also known as a white label ATM operator) in India based on the total ATM transactions in Fiscal 2021 and operational base as of March 31, 2021. (Source: CRISIL Report September 2021). India1 Payments IPO will hit the market in November 2021.

About India1 Payments

They operated a “india1ATM” network of 8,520 ATMs spanning 14 states and union territories in India as of June 30, 2021. The RBI issues licences to white label ATM operators under the Payment & Settlement Systems Act of 2007, and they have been an approved white label ATM company since February 12, 2014.

The gross transaction value (“GTV”) of cash transactions from their ATMs was 270,787.74 million, 310,064.55 million, 439,745.20 million, and 136,392.41 million in Fiscal 2019, Fiscal 2020, Fiscal 2021, and the three months ended June 30, 2021, respectively, and They processed 180.45 million, 205.25 million, 257.55 million, and 71.82 million transactions.

Footprints

As of June 30, 2021, their ATM business was concentrated in India’s semi-urban (population between 10,000 and 100,000) and remote (population under 10,000) areas (collectively, the “SURU regions”), where 7,619 ATMs (89.42 percent of their ATMs) were located.

As per CRISIL Research, as of June 30, 2021, their company was the second biggest ATM operator in the SURU areas in terms of ATMs. (Source: September 2021)

CRISIL Report Their clients are those who have a valid debit card from one of the more than 100 banks that participate in the National Financial Switch (“NFS”), which is run by the National Payments Corporation of India (“NPCI”).

Business Model

Rather than the consumer, they collect income on a per-transaction basis from an interchange charge paid by the clients’ banks for executing ATM transactions. Interchange costs are imposed by the Reserve Bank of India, and they are now 17 for financial transactions and 6 for non-financial transactions.

The NFS is used to handle transactions between their client’s bank and our ATMs using NPCI gateways. As a result, their Company does not require specific bank permissions or arrangements for its clients to use their ATMs.

However, the NPCI oversees the banks’ and ATM operators’ payment gateways and pays the cash distributed as well as transaction-based interchange fees (plus GST) four times everyday.

Clients & Future plans

They created an online loyalty programme that rewards their customers with cash back and redemption prizes in order to encourage them to make more transactions.

In November 2020, they started their loyalty programme. On June 30, 2021, they had 379,498 registered loyalty customers, and on August 1, 2021, they had 500,000 registered loyalty customers.

In collaboration with an aggregator, they just included personal loans to their loyalty programme, where they gather leads and pass them on to the aggregator.

They’re presently trying to develop this loyalty programme into a digital platform that would allow them to provide loans, insurance, and other financial goods via an app.

India1 Payments IPO

India1 Payments Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 150 crores and 10,305,180 equity share on 07 September 2021.

The offer includes 150 crores value fresh equity shares and there is an offer for sale (OFS) of 10,305,180 equity share by the promoters mentioned in the DRHP.

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-21	31-Mar-20	31-Mar-19
Total Assets		1,449.05	868.53	722.98
Total Revenue		327.06	266.15	234.96
Profit After Tax		3.34	(5.87)	(24.18)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	1.80	1.12	3
Financial Year 2020	(3.17)	(3.17)	2
Financial Year 2019	(13.07)	(13.07)	1
Weighted Average	(2.34)	(2.68)

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 are some of the basic features that contribute into determining the Offer Price:

• Strong presence in semi-urban and rural regions that are underbanked.
• The largest white label ATM operator in the country, with a rapidly expanding ATM network.
• The ATM operation style improves regional client experience while also increasing consumer availability.
• Regulatory climate that is beneficial.
• Profitability and cash flow are increasing as a result of a focus on unit economics and active cost management.
• With the help of The Banktech Group, a professional executive team is in place.

India1 Payments 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. As a result, providing an industry comparison in relation to their corporation is unfeasible.

India1 Payments IPO Details

IPO Opening Date	November 2021
IPO Closing Date	November 2021
Issue Type	Book Building
Face Value	5 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Order Quantity	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	150 crores
Offer for Sale	10,305,180 equity share

India1 Payments IPO Date

India1 Payments IPO opening date is November 2021, and the closing date is November 2021. The India1 Payments issue may list in November 2021.

IPO Opening Date	November 2021
IPO Closing Date	November 2021
Basis of Allotment Date	November 2021
Initiation of Refunds	November 2021
Credit of Shares to Demat Account	November 2021
IPO Listing Date	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.

India1 Payments 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 India1 Payments IPO.

India1 Payments IPO GMP

India1 Payments IPO Grey Market Premium is 0.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021
November 2021

India1 Payments IPO Review

India1 Payments IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of India1 Payments IPO is good or bad.

India1 Payments IPO Risk

• Maintaining and extending their ATM network, as well as the performance of that network, is important to their business and financial success.
• The COVID-19 pandemic’s consequence is unknown and could have a negative influence on their business.
• They rely on the Reserve Bank of India (RBI) and scheduled banks to supply them with the cash they need to run their ATMs.
• Interchange fees collected on ATM transactions account for the majority of their earnings.
• In India, the National Payments Corporation of India (NPCI) processes interbank transactions; there is no other processor.
• Their cash delivery and loading costs account for a large amount of their operating costs.
• To make their ATM operations easier, they’ve formed partnerships and agreements with third companies.

Other Threats

• They rely on their cash flow capabilities to fund the cash that they utilise in their ATMs.
• Machines and spare parts are supplied by 3 ATM manufacturers.
• Any fines or investigations by the RBI or other regulatory bodies connected to our operations could have a detrimental impact on their company.
• As part of our ATM expansion strategy, they depend on franchisees.
• The RBI’s and the Government of India’s policy support for their business has benefited their white label ATM operations.
• It’s possible that their company won’t be able to implement its expansion strategies or break into new areas.
• There are ongoing legal proceedings against their company and its promoters. Any negative outcome in these actions could have a negative impact on their business.

Types of transactions

An “on-us” transaction is one that takes place at an ATM of the card’s issuing bank. A transaction made at any other ATM, including one of theirs, is referred to as a “off-us” transaction.

Customers can use an india1ATM to execute a variety of financial operations, including cash withdrawals, PIN changes, and requests for account balances, mini-statements, and cheque books.

Customers who use ATMs that are not part of their bank’s network are entitled to three free “off-us” ATM transactions per month in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi, and five free “off-us” ATM transactions in other cities.

Franchisees

We’ve created an operational model that strives to increase customer accessibility to their ATMs while also improving the local client experience. Some of their ATMs have been franchised, particularly to local businesses in the SURU areas, as part of their business strategy.

They use their franchisees’ local knowledge to influence their site selection and ATM services, allowing them to better serve their clients’ specific local needs.

They are able to install their ATMs through their franchisees in areas with little cash management infrastructure and where they may face less competition.

Furthermore, they take use of their franchisees’ closeness to local ATMs to ensure more efficient cash replenishment.

India1 Payments 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

India1 Payments IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
November 2021	1
November 2021	2
November 2021	3

Management

They believe that their management’s credible reputation, extensive industry experience, and business acumen have aided their growth and operating performance, and that this will remain in the future, as evidenced by the number of approaches our Organization has already initiated and effectively implemented.

Their management team, which includes K Srinivas, managing director and chief executive officer, Rajeev Desai, chief operating officer, R. Kumara Krishnan, chief sales and marketing officer, and Sanjay Bajaj, chief financial officer.

They all has substantial expertise handling client or network businesses with powerful footprints in SURU markets (in their respective areas).

Promoters

• David Scott Glen
• The Banktech Group
• BTI Payments Singapore

Promoter’s Holding

Pre Issue Share Holding	51.05 %
Post Issue Share Holding