Mumbai-based Fino Payments Bank has received approval from capital markets regulator Securities and Exchange Board of India (SEBI) for its Rs 1,300-crore initial public offering (IPO).
As per the company’s Draft Red Herring Prospectus (DRHP) which was filed with SEBI on July 30, the issue will comprise a fresh issue of Rs 300 crore and an Offer For Sale (OFS) of 15,602,999 equity shares.
The OFS will be done by promoter Fino Paytech Limited which holds 100 percent shares of the Payments Bank, according to the DRHP. The offer also includes shares aggregating to Rs 3 crore reserved for employees.
Fino Payments Bank joins fintechs such as Paytm, Mobikwik and Policybazaar that have filed their DRHPs and are in line to go public.
Here is a look at five things you need to know about the company.
Fino Payments Bank provides financial products and services digitally, including current and saving accounts, insurance and also has a mobile banking and wallet app named BPay. The company has a payments bank licence from the Reserve Bank of India (RBI) which allows it to accept deposits up to Rs 1 lakh, issue debit cards and offer remittance services.
Fino Payments Bank operates an asset-light business model and relies on its network of 6.41 lakh merchants and other participants.
The payments bank has been incurring losses and the losses have narrowed in FY21 as compared to FY20. However, loss incurred in FY21 remains higher than in FY19.
The bank has seen a six-fold growth in its merchant base since FY19. It facilitated 4,349 lakh transactions worth Rs 1.32 trillion in FY21.
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