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Fino Payments Bank IPO: 10 key things to know about the issue, company

Fino Payments Bank IPO | The offer comprises a fresh issue of Rs 300 crore by the company and an offer for sale of 1.56 crore equity shares by sole promoter Fino Paytech.

October 29, 2021 / 04:19 PM IST
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Fintech company Fino Payments Bank’s is the second initial public offering (IPO) opening for subscription this week, after FSN E-Commerce Ventures, the Nykaa and Nykaa Fashion operator.

Here are 10 key things to know before subscribing to the public issue:

1) IPO Dates

The offer opened for subscription on October 29 and will close on November 2.

2) Offer Details


The offer comprises a fresh issue of Rs 300 crore by the company and an offer for sale of 1.56 crore equity shares by sole promoter Fino PayTech.

3) Price Band and Fund Raising

The price band for the offer has been fixed at Rs 560-577 per equity share. The total fundraising through the IPO would be Rs 1,200.29 crore at the upper end of the price band.

4) Objectives of the Public issue

The company will utilise net proceeds from its fresh issue to augment the bank’s tier-1 capital base to meet its future capital requirements. The funds raised via the offer for sale will go to the selling shareholder Fino PayTech.

5) Lot Size and Categorywise Reserved Portion

Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter. The minimum investment to be made by retail investors is Rs 14,425 for a single lot and the maximum investment would be Rs 1,87,525 for 13 lots.

Of the total offer size, 75 percent is reserved for qualified institutional buyers, 15 percent for allocation to non-institutional bidders and the remaining 10 percent for retail investors.

6) Company Profile

Fino Payments Bank offers a diverse range of financial products and services that are primarily digital and have a payments focus. Since 2017, the company has grown its operational presence to cover over 90 percent of districts as of September 2021.

It operates on an asset-light business model that principally relies on fee and commission-based income generated from its merchant network and strategic commercial relationships.

In financial year 2021, its platform facilitated 43.49 crore transactions, up from 31.85 crore in FY20, and the gross transaction value was Rs 1,32,930.69 crore, up from Rs 94,452.57 crore over the same period. In the quarter to June 2021, the platform facilitated approximately 12.33 crore transactions and the gross transaction value was Rs 39,035.99 crore.

Financial Inclusion Network Operations (FINO) started as a technology company to develop technological solutions. In September 2015, Fino PayTech received in-principle approval from the Reserve Bank of India (RBI) to set up a payments bank which commenced operations in June 2017.

CRISIL forecasts the digital payments value in India to reach Rs 3,500 lakh crore in FY25 from Rs 1,623 lakh crore in FY20, translating into compound annual growth rate of 16-18 percent, which can be attributed to the rise in smartphone and mobile internet adoption, convenience offered by digital payments and the ubiquitous availability of payment solutions.

7) Financials

The payments bank has been profitable since the fourth quarter of financial year 2020. It posted a profit of Rs 20.47 crore in FY21, against a loss of Rs 32.03 crore in FY20, and income (interest earned and other income) in the same period rose to Rs 791.03 crore from Rs 691.4 crore.

During the June 2021 quarter, the company had a profit of Rs 3.13 crore, up from Rs 1.85 crore in the corresponding period of the previous fiscal. Income in the same period grew to Rs 206.24 crore from Rs 151.32 crore.

8) Promoters and Management

Fino Payments Bank is a wholly owned subsidiary of Fino PayTech which is engaged in providing technology-based solutions and services related to financial inclusion. Fino PayTech is backed by marquee investors like Blackstone, ICICI Bank, Intel Capital Corporation, Bharat Petroleum Corporation, HAV3 Holdings (Mauritius) and World Bank subsidiary International Finance Corporation (IFC).

Rishi Gupta, the managing director and CEO of Fino Payments Bank, is a qualified chartered accountant and cost and works accountant and a member of the Institute of Chartered Accountants of India. He is a founding member of the bank and he was an employee of Fino PayTech.

Mahendra Kumar Chouhan is part-time chairman and independent director on the board. Suresh Kumar Jain, Punita Kumar Sinha, Deena Asit Mehta and Rajat Kumar Jain are independent directors, while Avijit Saha and Ravi Subbaiah Pagadala are nominee directors.

Ashish Ahuja is the chief operating officer and Ketan Dhirendra Merchant the chief financial officer of the payments bank.

9) Allotment & Listing Date

Fino Payments Bank will finalise the share allotment on November 9 and will refund money to unsuccessful investors on November 10. Equity shares will get credited to demat accounts of eligible investors on November 11.

Trading in the bank’s equity shares will commence on November 12.

Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the offer.

10) Risks and Concerns

Here are some risks and concerns highlighted by analysts at KRChoksey and Anand Rathi:

  1. a) The bank undertakes fees and commissions-based activities, and the financial performance may be adversely affected by an inability to generate income from such activities.

  2. b) Payments banks in India are subject to stringent regulatory requirements and prudential norms. Its inability to comply with such laws, regulations and norms may have an adverse effect on the business.

  3. c) A significant portion of the merchant distribution network is located in Uttar Pradesh, Bihar and Madhya Pradesh, and accordingly any adverse changes in the conditions affecting these regions can adversely affect the business.

  4. d) The company is subject to supervision and inspection by authorities such as the RBI. Any adverse observations from such regulators could have an adverse effect on the business.

  5. e) The company relies extensively on its information technology systems and any weakness, disruption or failure in such systems or breach of data, could adversely affect its operations and reputation.

Disclaimer: The views and investment tips expressed by investment experts on are their own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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first published: Oct 29, 2021 04:19 pm
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