Fino Payments Bank on Thursday said it has garnered Rs 539 crore from anchor investors ahead of its initial share sale that opens for public subscription on Friday. The company has decided to allocate a total of 93,37,641 equity shares to 29 anchor investors at Rs 577 apiece, aggregating to Rs 538.78 crore, according to a circular uploaded on BSE website.
Fidelity, HSBC Global, Pinebridge, Aditya Birla Sun Life Mutual Fund (MF), Tata Mutual Fund, SBI Life Insurance Company, Invesco, BNP Paribas and Societe Generale, among others, have been allotted shares.
The initial public offer (IPO) includes a fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.
The offer includes a reservation of Rs 3 crore worth of shares for the company’s eligible employees.
The issue, with a price band of Rs 560-577 a share, will open on October 29 and conclude on November 2.
At the upper end of the price band, the initial share-sale is expected to fetch Rs 1,200.3 crore.
Proceeds from the fresh issue would be used towards augmenting the bank’s Tier – 1 capital base to meet its future capital requirements.
Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter.
The company said that up to 75 per cent of the total offer has been reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 per cent for retail investors.
Fino Payments Bank or FPBL is a scheduled commercial bank serving the emerging India market with its digital based financial services.
The company is a fully-owned subsidiary of Fino Paytech, a pioneer in technology enabled financial inclusion solutions.
Fino Paytech is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).
Over the last few years, FPBL has witnessed a steep surge in transaction volumes on the back of digitisation and proliferation of its banking points.
The payment bank’s platform has facilitated more than 434 million transactions with a gross transaction value of Rs 1.32 lakh crore in the financial year 2020-21, as per the draft papers.
It has a strong leadership position in the fintech industry having the largest network of micro ATMs as of March 2021 with a market share of 55 per cent, a merchant network of 6.4 lakh and 25.7 lakh bank accounts.
Its revenue for FY21 stood at Rs 791 crore that grew at a CAGR of 29 per cent in the last three years and the bank registered a profit of Rs 20.5 crore in FY21.
Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the book running lead managers to the issue. PTI SP ABM ABM ABM