Anand Rathi IPO report on Fino Payment Bank
Financial Inclusion Network Operations (“FINO”) started as a technology company aimed at developing technological solutions and comprised key employees including Rishi Gupta, MD and CEO. On September 7, 2015, Fino PayTech Limited was granted an in-principle approval to set up a payments bank and, following their incorporation in April 2017, they commenced operations as a Payments Bank with effect from June, 2017, pursuant to receipt of the final RBI approval dated March 30, 2017. Fino Payment is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have a payments focus. They offer such products and services to their target market via a pan-India distribution network and proprietary technologies, and since 2017, the company have grown their operational presence to cover over 90% of districts as of September 30, 2021.
Valuation and Outlook
The company is available at the upper end of the IPO price band at Price to Book Value of 29.29x based on its NAV of Rs. 19.70 as at the end of 1QFY22, demanding a market cap of Rs. 48,015 million. The RoNW for FY21 stands at 14.6%. With Pan India operational presence in over 90% of district the company has great opportunity to strengthen its business in coming years. We recommend "SubscribeLong Term" rating to this IPO.
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