Fino Payments Bank IPO in the market, should I pay?


  • The company plans to raise Rs 1,200 crore through Fino Payments Bank IPO.
  • A minimum bid of 25 shares and a price band of Rs 560-577 has been fixed for investors to pay for the IPO.
  • A day before the issue opened, the company had raised Rs 538.78 crore from anchor investors.

The IPO of Fintech Payments Bank has opened today i.e. on 29 October. The IPO will close on the day of Dhanteras on November 2. The company plans to raise Rs 1,200 crore through the issue. The IPO has a fresh issue of Rs 300 crore, while shares worth Rs 900.29 crore will be sold through offer for sale. The promoters of the company will sell 1,56,02,999 shares through offer for sale.

Fino Payments Bank has bid a minimum of 25 shares for investors. The price band of the stock is Rs 560-577. This means that as per the upper price band, an investor needs to invest at least Rs 14,425. A single investor can apply for a maximum of 13 lots i.e. a maximum bid of Rs 1,87,525.

Whether to pay for this IPO or not?

Brokerage firms believe that the high valuation of the company may raise investor concerns, given the company’s asset light model and long-term growth prospects. This is the reason why brokerage houses are advising to invest in these IPOs carefully.

According to Marwari Shares and Finance, the issue price of the company is Rs 560-577. Post listing, the company has a book-to-book value of Rs 10.58 crore and a market cap of Rs 4,8015 crore. The brokerage house said, “The company has a very good business model and does not require a lot of assets. Investors are advised to apply for this IPO based on their experience of running the company and extensive work experience ” The framework that allows it to target the market very well.” Reliance Securities also said that Fino Payments Bank has several competitors. 95% of the bank’s income comes from fees and commissions. The company’s growth in digital in the country Depends on the development of coverage.

How much is reserved for whom?

10% of Fino Payments IPO is reserved for retail investors. While 75% is reserved for QIB, 15% is reserved for NII. Companies have reserved 3 crore shares for their employees. A day before the issue opened, the company had raised Rs 538.78 crore from anchor investors. The issue of the company will close on November 2. The company said it has issued 93,37,641 equity shares to anchor investors at Rs 577 per share and raised Rs 539 crore.

Who invested?

Anchor investors who have invested in the company’s issue include Pinebridge Global Funds, HSBC, InvestC Trustee, ITPL Investco, Mathews Asia Small Finance Companies Fund, Fidelity Funds, Societe Generale and Segnati India Mauritius. There are other anchor investors as well. These include BNP Paribas, Tata MF, SBI Life Insurance, Motilal Oswal MF and Aditya Birla Sunlife Trustees.

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