Fino Payments Bank Ltd IPO

About Fino Payments Bank IPO

Incorporated in 2017, Fino Payments Bank is one of the emerging fintech companies in this country. Backed by industry behemoths such as ICICI Bank, BPCL, and Blackstone, this financial institution has managed to cover 94% of the Indian PIN codes, as stated on their website. Moreover, the bank has 6.41 lakh outlets, 143 customer service points, and 54 bank branches throughout India. Furthermore, they have 6.42 lakh registered merchants, 2.6 million bank accounts on their platforms, as stated on their website.

Fino Payments Bank IPO Objectives :

• The proceeds from the fresh issue will be utilised to strengthen the tier-1 capital of the company further
• The proceeds will be used to meet expenses associated with this offer

Fino Payments Bank IPO - Details

Emerging fintech company Fino Payments Bank has filed its draft red herring prospectus with market regulator Securities and Exchange Board of India to float an IPO of Rs. 1,300 crores. This initial public offer will comprise fresh equity shares worth Rs. 300 crores and an OFS of 15.6 million shares.

IPO Opening Date            Oct 29, 2021

IPO Closing Date              Nov 2, 2021

Issue Type           Book Built Issue IPO

Face Value          ₹10 per equity share

IPO Price              ₹560 to ₹577 per equity share

Market Lot         25 Shares

Min Order Quantity         25 Shares

Listing At             BSE, NSE

Issue Size             [.] Eq Shares of ₹10

(aggregating up to ₹1,200.29 Cr)

Fresh Issue          [.] Eq Shares of ₹10

(aggregating up to ₹300.00 Cr)

Offer for Sale     15,602,999 Eq Shares of ₹10

(aggregating up to ₹900.29 Cr)

Fino Payments Bank IPO Important Dates

IPO Open Date	Oct 29, 2021
IPO Close Date	Nov 2, 2021
Basis Of Allotment Date	Nov 9, 2021
Initiation Of Refunds	Nov 10, 2021
Credit Of Shares To Demat ACcount	Nov 11, 2021
IPO Listing Date	Nov 12, 2021

 

Why Should You Invest in Fino Payments Bank IPO?

Based out of Maharashtra, Fino Payments Bank is an emerging fintech company with a widespread network of customer touchpoints across the country. Their USP is the reach in the interior parts of this country and their strong financials. Here are some reasons why Fino Payment Bank is an ideal investment option –

1. The company has an asset-light business model, mainly based on commission and fees based on income generation from their strategic commercial tie-ups and merchant network.

2. Such a merchant led business model needs minimal capital expenditure, which in turn increases their operating profit.

3. Also, the company's integration of the latest technology and data analytics allows them to increase their customer experience. Also, they can now sell third-party financial products, increasing their revenue and extending customised products.

4. A glance at the company financial will reflect that Fino Payments Bank has increased its revenue in three successive years.

5. Also, they have been profitable in the last financial year, accumulating Rs. 2,985.05 million.

Fino Payments Bank IPO – Noteworthy Highlights

Fino Payments Bank started its operations in 2017, and in 4 years, the fintech company has amassed a notable customer base across the country. Here are some notable highlights of the company that prospective investors should know of –

1. Fino Payments Bank has a footprint in 94% of the PIN codes of India and has 143 customer service points, 54 bank branches, and 6.41 lakh banking outlets.

2. It has 6.42 lakh registered merchants under its portfolio and 2.6 million bank accounts.

3. As of March 2021, its gross transaction value was Rs. 1.33 trillion.

4. Fino Payments Bank’s platform has facilitated more than Rs. 430 million in transactions.

Fino Payments Bank IPO - SWOT Analysis

• Strengths
• Steady improvement in volume: Despite commencing its operations recently, the fintech company has registered steady growth in terms of volume against a comparatively lower operational scale. In FY2021, Fino Payments Bank’s monthly average was around Rs. 9300 - 9400 crores compared to its Rs. 8300 - 8400 crores in FY2020. This steady growth has helped the company to remain profitable over the years.
• Diverse product portfolio: Fino Payments Bank has a diverse product portfolio that includes current and savings account, micro-ATM, AePS, third-party products such as insurance, cash management services, and many more. Resultantly, its revenue stream remains diverse and helps the financial institution to increase its revenue each year.
• Weaknesses
• Merchant-biased operation model: The operational model of Fino Payments Bank primarily relies on its merchants and agents. This network is in charge of handling cash via CMS, CASA, remittance, etc.
• Dealing with third-party products: Since a significant portion of Fino Payments Bank’s business depends on third-party products, changes on that front will affect their revenue.  
• Opportunities
• Holds potential: Fino Payments Bank is likely to grow even further in the coming years. As pointed out by CRISIL, as of March 2021, their sector has about Rs. 0.85 trillion in potential revenue. Now pairing such revenue potential with the bank’s widespread network, it holds prospect.
• Threats
• Established competitors: Fino Payments Bank is currently battling against competitors who are well established. Financial institutions such as Bandhan, RBL, Dhanlaxmi, Equitas, etc., have a strong foothold in their region and have expanded in other areas of the country. Moreover, these banks are better prepared with higher capital to deal with any uncertainty.

 How to apply for Fino Payments Bank IPO?

You can apply for the Fino Payments Bank IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Fino Payments Bank IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Fino Payments Bank IPO
2. If you’re a new investor open free Demat account with link

https://tinyurl.com/k79bdf4z

 for free with Angel One to begin your investment journey.