Fintech company Fino Payments Bank's IPO has been subscribed 39 percent. Investors have put in bids for 44.43 lakh equity shares against IPO size of 1.14 crore equity shares on October 29, the first day of bidding.
Ahead of its IPO, Fino Payments on Thursday said it has garnered Rs 539 crore from anchor investors.
The 1,200 crore initial public offering (IPO) of Fino Payments Bank opened for subscription today (October 29). The compnay has fixed a price band of Rs 560-577 a share for the the three-day share sale that will conclude on November 2.
The offer includes a reservation of Rs 3 crore worth of shares for the company's eligible employees.
Retail investors have bought 2.12 times of shares against the portion reserved for them, and employees have put in bids for 5,725 equity shares against the reserved portion.
A portion set aside for non-institutional investors was subscribed 1 percent, while qualified institutional buyers are yet to put in their bids.
At the upper end of the price band, the initial share sale is expected to fetch Rs 1,200.3 crore.
Proceeds from the fresh issue would be used towards augmenting the bank's Tier-1 capital base to meet its future capital requirements.
Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter.
The company said that up to 75 percent of the total offer has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors.
Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the book running lead managers to the issue.
Fino Payments Bank (FPB) is a scheduled commercial bank serving the emerging Indian market with its digital-based financial services.
The company is a fully-owned subsidiary of Fino Paytech. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum, and International Finance Corporation (IFC).
Over the last few years, Fino Payments has witnessed a steep surge in transaction volumes on the back of digitization and proliferation of its banking points.
The payment bank's platform has facilitated more than 434 million transactions with a gross transaction value of Rs 1.32 lakh crore in the financial year 2020-21, as per the draft papers.
It has a strong leadership position in the fintech industry having the largest network of micro ATMs as of March 2021 with a market share of 55 percent, a robust merchant network of 6.4 lakh and 25.7 lakh bank accounts.
Its revenue for FY21 stood at Rs 791 crore that grew at a CAGR of 29 percent in the last three years and the bank registered a profit of Rs 20.5 crore in FY21.
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