Blog

FINO Payments Bank IPO : Dates, Financials and More

The company was formed just 3 years back. FINO Payments bank initiated its operations in 2017. The company provides a wide range of financial products in the Indian Market.It has Pan- India Distribution network. The company not only provides its services to customers but also manges BC Networks on behalf of other banks. Like Suryodaya Bank, FIno Bank also focuses on the low financial literacy class of people. The network of ATMs is the highest for FINO bank in India. It also has the 3rd fastest growing deposit rate in India.

IPO DETAILS

FINO Payments Bank IPO is set to launch on 29th Oct., 2021. The subscription timeline extends till 2nd Nov, 2021. The size for the IPO is 1200.29 Crore Rs.. Shares issued through Offer for sale are 900.29 Crore Rs. Shares issued through Fresh issue are worth Rs. 600 Crore. The lot size is 12 shares and the price range is 560 Rs. – 577 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	29th Oct, 2021
CLOSING DATE FOR IPO	2nd Nov, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	560 Rs. – 577 Rs.
LOT SIZE	25 shares
MINIMUM ORDER QUANTITY	25 shares
ISSUE SIZE	1200.29 Crore Rs.
OFFER FOR SALE	900.29 Crore Rs.
FRESH ISSUE	300 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	12th Nov, 2021

IMPORTANT DATES

IPO OPENING DATE	29th Oct, 2021
CLOSING DATE FOR IPO	2nd Nov, 2021
IPO ALLOTMENT DATE	9th Nov, 2021
REFUNDS	10th Nov, 2021
DEMAT A/C CREDITED ON	11th Nov, 2021
IPO LISTING DATE	12th Nov, 2021

The FINO Payments Bank IPO begins for subscription from 29th Oct, 2021. The IPO subscription would continue till 2nd Nov, 2021. The allotment status for the shareholders who applied would come on 9th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 10th Nov, 2021. The DEMAT accounts of shareholders would be credited on 11th Nov, 2021. The listing of the company would be accompanied on 12th Nov, 2021.

Lead Managers

The lead managers are :

ICICI Securities Limited
Nomura Financial Advisory and Securities India Pvt. Ltd.
CLSA India Private Limited
Axis Capital Limited

The minimum lot size for the company is decided at 25 shares. This holding accounts to 14425 Rs.. The maximum lot size is decided at 325 shares. This amounts to Rs. 187525. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	25 shares	14425 Rs
Maximum	325 shares	187525 Rs

OBJECTIVES FOR THE IPO

The funds can be utilized for General corporate purposes.
Capital requirements will be fulfilled with the IPO money.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	10102	6240	6840
REVENUE	7910	6913	3711
NET PROFIT	204	(-320.36)	(-624)

The assets of the company are increasing at a very high rate. This signals that the bank is going through a rapid phase of expansion. One good news among this expansion is that the bank has posted its first year of profits. The 2021 year recorded 200 Crore Rs of profits. The previous years registered almost 600 and 300 Crore Rs of losses in 2019 and 2020 respectively. Alone with this one thing to note is the revenue of the company. The revenue is not growing in pace with the assets. This can be a sign of concern but nothing can be said surely due to the initial phase of the company. It has completed 4 years of banking in India and yet has a long journey to move forward. One can invest in the firm with a vision of 4 to 5 years for multibagger returns.

PROS

The company has just reported its profit for the financial year 2020-21. This is good for the payments bank.
Assets of the company have increased rapidly due to expansion from the Bank.

CONS

The revenue of the company is not increasing in line with its asset growth. It has good potential for growth but the competition in the market is also very huge.