Profitable Fintech, Fino Payments Bank’s IPO subscribed 87% on Day 2: Retail portion booked 4.65 times
Mumbai, November
01, 2021: Fino Payments Bank Limited (“Company”); one of the growing fintech company offering a diverse
range of financial products and services that are primarily digital and have a
payments focus, received bids of 99,90,600
shares against the offered 1,14,64,664 equity
shares, as per the 5:00 pm data available on
the bourses.
The
initial public offering of Fino Payments Bank witnessed strong retail investor
interest on the second day of subscription as well. Demand from
non-institutional counterparts, too, picked up.
The portion reserved for retail investors was
subscribed 4.65 times, employee portion was subscribed 0.56 times and the
Non-Institutional Investor category was subscribed 0.10 times, while Qualified
Institutional Buyer category didn’t see any response on Day 2. The Issue was
subscribed 0.87 times.
The Offer comprises of a fresh issuance of Equity Shares
aggregating up to ₹ 300 crores (“Fresh Issue”) and an offer
for sale of up to 15,602,999 Equity Shares by Selling Shareholders.
Axis Capital Limited, CLSA India Private Limited, ICICI Securities Limited, and
Nomura Financial Advisory and Securities (India) Private Limited are the
book running lead manager to the Offer (“BRLM”)
Brokerage Houses like Ventura, Hem Securities, Nirmal Bang, Marwadi Share
& Finance Ltd. etc. give a call to “SUBSCRIBE”.
Payments
banks and fintechs have been increasing their presence and reach by increasing
touch points through retail outlets which have a widespread presence in India.
In India, the private final consumption expenditure (PFCE) was 58% of GDP in
financial year 2021 at Rs. 116 trillion and India’s retail spending on goods
was at ~50% of its private consumption.
Fintechs
today are on top of the mind of traditional financial institutions as they
watch traditional business models change, and increasingly deliberate whether
to collaborate or compete withfintech. Digital payments landscape has the
highest number of fintechs in India and now other financial segments like
lending, insurance, wealth are also attracting fintechs.
Fino have a
strong leadership position within the Indian fintech industry, as it was ranked
third among banks in facilitating digital transactions, as of February 2020 by
the Ministry of Electronic & Information Technology; and had the largest
network of micro-ATMs, as of August, 2021. It is also the only payments bank to
offer a subscription-based savings account in India. The unique framework of
distribution, technology and partnership (the “DTP” framework) enables it to
serve its target market efficiently and is used to overcome and/or achieve improvements
on 3 key challenges associated with serving its target market - scale, service
and sustainability.
Company Information
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