Fino Payments Bank ₹1,200-crore initial public offering (IPO) will open for subscription on Friday and the three-day share sale will conclude on November 2. The company has fixed a price band of ₹560-577 per share. Ahead of its IPO, Fino Payments on Thursday said it has garnered ₹539 crore from anchor investors.
The initial public offer (IPO) includes a fresh issue of equity shares worth ₹300 crore and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.
Fidelity, HSBC Global, Pinebridge, Aditya Birla Sun Life Mutual Fund (MF), Tata Mutual Fund, SBI Life Insurance Company, Invesco, BNP Paribas and Societe Generale, among others, have been allotted shares in the anchor book process.
“Fino payments bank has posted a 46.0% CAGR in total revenues between FY2019-21 and has also turned around its operations and reported profits of Rs. 20 crore for the first time in FY2021. At the higher end of the price band the stock would be trading at P/E of 220x FY2021 fully diluted EPS of Rs. 2.6 which is expensive. Despite strong growth prospects, we believe that valuations do not justify the premium and hence we have a NEUTRAL recommendation to the IPO,” said Jyoti Roy – DVP- Equity Strategist, Angel One.
Proceeds from the fresh issue would be used towards augmenting the bank’s Tier – 1 capital base to meet its future capital requirements. Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the book running lead managers to the issue.
Fino Payments Bank or FPBL is a scheduled commercial bank serving the emerging India market with its digital based financial services. The company will emerge as the first payments bank to list on the stock exchanges.
Fino Payments Bank’s Managing Director and Chief Executive Rishi Gupta recently said the company does not believe in any cash burn or freebies, and has been profitable for more than a year now, as quoted by PTI.
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