Not looking at any strategic alliance with Capri Global Holdings: Fino Payments Bank CFO

Fino Payments Bank CFO Ketan Merchant

Ketan Merchant, Chief Financial Officer of fintech company Fino Payments Bank on November 24 shunned any immediate alliance with Capri Global Holdings Private limited post a large block deal that took place on Wednesday (November 23).

As per the NSE data, Capri Global Holdings bought 1.32 million shares representing 1.59 percent of the total equity of Fino Payments Bank at price of Rs 228.77 per share via open market deals yesterday.

However, speaking in an exclusive interview with CNBC-TV18 market team, Merchant clarified that they were not looking at any strategic alliance with Capri Global Holdings post the bulk deal. He stated, "At current state, there is nothing like that which we are exploring. There can be synergies in all financial services partnerships, that's always a possibility. (But) as things stand today, it is more in terms of business performance that is driving our growth."

When asked about the competition level between Fino Payments Bank and Capri Global Holdings, Merchant added that there was no competition between the two. "We are completely into payments and network space and Capri Holdings is into lending and there can be synergies, but I do not see any competition happening. Both are mutually exclusive businesses," he added.

Meanwhile, shares of Fino Payments on Thursday (November 24) ended over 13 percent higher at Rs 261.80 apiece on BSE, after jumping 18 percent during the intra-day session. The scrip rallied more than 14 percent to Rs 264 apiece on the BSE in the early trading session

Fino Payments Bank Ltd's stock has been in an upward movement since the past few sessions on the back of an increase in volumes. The scrip has jumped more than 40 percent in just two trading sessions.

The company's shares made their stock market debut in November last year, and are down over 52 percent since its listing. The initial public offering (IPO) was subscribed to 2.03 times that was open from October 29, 2021, till November 1, 2021. The price range for the offer was Rs 560-577 per share.

Fino Payments Bank is a wholly owned subsidiary of FINO PayTech, which is engaged in providing business and banking technology platform-based solutions and services related to financial inclusion.

On the merger with the parent company, Merchant added that Fino Payments Bank completed five years of operations in June this year, and going through the process, we are looking at a 24-month horizon in terms of going through it.