India’s Fino Payments Bank fixes IPO price band

Indian fintech firm Fino Payments Bank has fixed a price band of INR560-INR577 per share for its initial sale of shares to the public, which will open for subscription on 29 October, according to a press statement issued by the lender on Tuesday.

Fino Payments Bank intends to raise INR12bn (£100m) at the upper end of the price band. The offer will close on 2 November, the company said in its Red Herring Prospectus or final papers, filed with the country’s market regulator the Securities and Exchange Board of India (SEBI). 

The company’s initial public offering (IPO) comprises a fresh issue of shares of up to INR3bn and an offer for sale by existing investors of up to 15.60m shares. The firm would also consider raising funds from anchor investors ahead of the IPO. 

Commercial bank

The company plans to use the net proceeds from the fresh issue towards bolstering its Tier-1 capital base to meet its future capital requirements, it said.

Fino Payments is a scheduled commercial bank serving the Indian market with its digital-based financial services. The company is a fully owned subsidiary of Fino Paytech Limited (FPL), a pioneer in technology-enabled financial inclusion solutions.

FPL is backed by marquee investors such as US private equity major Blackstone, ICICI Group, Intel Capital Corporation, Bharat Petroleum, HAV3 Holdings (Mauritius) and World Bank arm, International Finance Corporation, among others.

Issue managers

Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory and Securities (India) are the managers to the issue.

The fintech bank, which filed early papers for an IPO in the last week of July, had obtained its observations on 1 October. SEBI observations are necessary for any company to launch public issues such as an IPO, follow-on public offer (FPO) and a rights issue.

The fintech bank turned profitable in the fourth quarter of FY20 and has consistently made profits for seven consecutive quarters. 

Read more: Indian stock markets look upbeat as Asian indices open firm

Related topics

#Dollar (USD) #IPO

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