Fino Payments Bank has successfully closed its anchor book ahead of its IPO starting today, 29 October 2021. Strong Fino Payments Bank anchor investors book is an indication of the primary offer being received well in the market.
Fino Payments Bank anchor investors
As per a stock exchange notification, Fino Payments Bank anchor investors include Fidelity, HSBC Global, Pinebridge, Birla Mutual Fund, Motilal Oswal, TATA Mutual Fund, SBI Life, Invesco, BNP Paribas and Societe Generale have been allotted shares among others.
The IPO is aiming to raise INR1,200 crore of which 75% will be allocated to institutional investors. Non-institutional investors comprising high net worth individuals, retail shareholders and employees can invest in the remaining 25% of the book. The IPO also comprises INR300 crore as a primary issuance.
The IPO opens for subscription on 29 October and will remain open till 2 November. The price band for the IPO fixed in the range of INR560-577 per share. At the upper end of the price band, the fintech will be valued about 6 times its FY2021 revenue. The face value of each share is INR10.
Fino Payments Bank is a fast-growing profitable fintech, a unique proposition for investors looking to invest in the growing fintech space. It had a year-on-year throughput growth of 107% in FY20 and 41% in FY2021. It also reported a profit of INR20.5 crore in FY2021 which had resulted in an ROE of 15%. The journey on profitability has commenced and is expected to increase exponentially going forward.
Fino Payments Bank – Financial Performance (in INR crore)
| Â | FY2019 | FY2020 | FY2021 | Q1 FY2022 |
| Revenue | 371.1 | 691.4 | 791.0 | 206.2 |
| Expenses | 433.5 | 723.4 | 770.6 | 203.1 |
| Net income | (62.4) | (32.0) | 20.5 | 3.1 |
| Margin (%) | (16.8) | (4.6) | 2.6 | 1.5 |
As per independent sources aware of the deal, the company has been doing extensive roadshows with a large number of institutional investors. It has received overwhelming responses from several large global and domestic long-only funds with multiple of them being keen to subscribe to the entire anchor book.
Fino Payments Bank is a fully owned subsidiary of Fino Paytech which had last raised funds in 2016. Fino Paytech is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. Frugal innovation is the key that has given fintech a leadership position at the middle of the pyramid that primarily constitutes emerging India customers. It enjoyed a 55% market share in micro-ATMs in FY21.
