Fino Payments Bank
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Oct 2021 – 02 Nov 2021
- Listing date
- 12 Nov 2021
- Face value
- ₹10 per share
- Issue price
- ₹577 per share
- Lot size
- 25 shares
- Total issue size
- ₹1,200 Cr
- Market cap at offer price
- ₹4,801 Cr
- Promoter holding
- 100.00% → 75.00% pre-issue → post-issue
- ISIN
- INE02NC01014
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Mindspace Juinagar, Plot No Gen 2/1/F, Tower 1, 8th Floor, TTC Industrial Area, MIDC Shirwane, Juinagar, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 93,37,641 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 25 shares per lot, in multiples, at ₹577
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 25 | ₹14,425 |
| Retail (max) | 13 | 325 | ₹1,87,525 |
| S-HNI (min) | 14 | 350 | ₹2,01,950 |
| S-HNI (max) | 69 | 1,725 | ₹9,95,325 |
| B-HNI (min) | 70 | 1,750 | ₹10,09,750 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹4,801 Cr |
About Fino Payments Bank
Fino Payments Bank Limited was incorporated as Fino Fintech Foundation on June 23, 2007, and subsequently converted to Fino Payments Bank Limited following RBI approval to operate as a Payments Bank. The bank commenced operations on June 30, 2017 with an objective to widen the spread of payment services and deposit products to small businesses, low-income households, migrant labor workers and other unorganized entities. The bank operates a capital-light, merchant-led business model primarily focused on fee and commission-based income. Its product and service offerings include liability products (CASA), micro-ATMs, Aadhaar Enabled Payment System (AePS) transactions, domestic remittances, and debit cards. As of June 30, 2021, the bank managed approximately 724,671 merchants across its own and API channels, 17,430 active Business Correspondents (BCs), and maintained a CASA ratio of 100%, with retail deposits accounting for 100% of total deposits. The bank generated ₹7,910.27 million in total income for FY 2021, demonstrating growth from ₹3,711.21 million in FY 2019 (CAGR of 22.1%).
Company Analysis
from RHPFino Payments Bank Limited is a digital-first payments bank offering CASA deposits, micro-ATMs, AePS, remittances, and debit cards to unserved and underserved populations across India through a merchant-led distribution network.
Fino Payments Bank Limited was incorporated as Fino Fintech Foundation on June 23, 2007, and subsequently converted to Fino Payments Bank Limited following RBI approval to operate as a Payments Bank. The bank commenced operations on June 30, 2017 with an objective to widen the spread of payment services and deposit products to small businesses, low-income households, migrant labor workers and other unorganized entities. The bank operates a capital-light, merchant-led business model primarily focused on fee and commission-based income. Its product and service offerings include liability products (CASA), micro-ATMs, Aadhaar Enabled Payment System (AePS) transactions, domestic remittances, and debit cards. As of June 30, 2021, the bank managed approximately 724,671 merchants across its own and API channels, 17,430 active Business Correspondents (BCs), and maintained a CASA ratio of 100%, with retail deposits accounting for 100% of total deposits. The bank generated ₹7,910.27 million in total income for FY 2021, demonstrating growth from ₹3,711.21 million in FY 2019 (CAGR of 22.1%).
Objects of the Issue
- Augmenting our Bank's Tier – 1 capital base to meet its future capital requirements ₹3,000 million p.15
- Augmenting Tier-I capital base to meet future capital requirements arising from growth in assets, investments and to ensure compliance with regulatory requirements on capital adequacy prescribed by RBI ₹2,833.57 million (Net Proceeds from Fresh Issue) p.75
- Meeting expenses in relation to the Offer ₹166.43 million p.75
- Not specified in this document section
- General corporate purposes Not specified in this section
Issue Structure
- Total Issue
- ₹12,002.93 million (2,08,02,305 Equity Shares)
- Fresh Issue
- ₹3,000 million (51,99,306 Equity Shares)
- Offer for Sale
- ₹9,002.93 million (15,602,999 Equity Shares by Fino PayTech Limited)
- Price Band
- ₹560 - ₹577 per Equity Share (Floor Price to Cap Price)
- Lot Size
- 25 Equity Shares (Bid Lot)
- Face Value
- ₹10 per Equity Share
Business Model
Fee and commission-based business model. For the three months ended June 30, 2021 and financial years 2021, 2020 and 2019, total fees and commissions combined accounted for 97%, 98%, 97% and 95% of total income respectively. Revenue is generated on a per-transaction basis for products and services including CASA accounts, micro-ATMs, AePS transactions, domestic remittances, debit cards, and third-party products such as insurance. The bank does not undertake lending activities and maintains a capital-light distribution model through merchants, BCs, branches and CSPs rather than physical infrastructure.
Business Segments
SWOT Analysis
- • Pan-India merchant distribution network with significant scale(p.30)
- • Diverse product portfolio with fee and commission-based revenue model(p.15)
- • RBI-licensed Payments Bank with regulatory approval(p.1)
- • Strong revenue growth trajectory(p.34)
- • Merchant-led capital-light business model(p.15)
- • Significant growth in merchant base(p.34)
- • Largest micro-ATM network in India with 51% market share(p.138)
- • Only payments bank offering subscription-based savings accounts(p.130)
- • Achieved profitability in Q4 FY2020 and maintained it thereafter(p.128)
- • Ranked third among banks in digital transaction facilitation(p.130)
- • Asset-light merchant-led model with minimal capex for expansion(p.137)
- • Pan-India operational presence covering over 90% of districts(p.128)
- • Experienced leadership with marquee investors in promoter(p.134)
- • Extensive distribution network with strong merchant presence(p.147)
- • Diversified revenue streams not concentrated on few customers(p.149)
- • Strong technology infrastructure with high processing capacity(p.149)
- • Scheduled bank status with enhanced regulatory positioning(p.149)
- • 100% CASA ratio demonstrating customer deposit stability(p.141)
- • Rapid growth in merchant and customer base(p.145)
- • Strategic commercial relationships with well-known brands(p.149)
- • Diverse product and service offerings with strong market positioning(p.251)
- • Unique phygital distribution model with asset-light operations(p.251)
- • Merchant-led distribution model requiring minimal capital expenditure(p.251)
- • Strong capital adequacy ratios providing regulatory compliance buffer(p.252)
- • Achievement of profitability and positive growth trajectory(p.251)
- • Only payments bank offering subscription-based savings account in India(p.251)
- • Significant revenue growth from commission and brokerage through diversified transaction channels(p.263)
- • Strong deposit growth driven by subscription-based CASA offering(p.267)
- • Substantial investment portfolio growth to meet regulatory SLR requirements(p.266)
- • Significant capital expansion capability with strong capital adequacy ratios(p.269)
- • Rapid growth in merchant enrolment and banking outlets(p.262)
- • Limited operating history as a Payments Bank(p.28)
- • Past net losses in FY2019 and FY2020(p.33)
- • High employee attrition rates(p.37)
- • Significant business concentration in three states(p.30)
- • High Business Correspondent attrition rates(p.30)
- • History of fraud losses(p.31)
- • RBI regulatory penalties and observations(p.32)
- • Pending litigation with significant exposure(p.38)
- • High employee attrition rates despite low KMP attrition(p.134)
- • Dependence on merchant network for distribution and operations(p.128)
- • Not permitted to undertake direct lending, limiting revenue potential(p.129)
- • Significant capital investment required in technology infrastructure(p.132)
- • Heavy dependence on promoter and concentrated shareholding(p.179)
- • Cumulative losses and negative retained earnings(p.191)
- • Inability to offer credit products directly limiting revenue potential(p.144)
- • Limited branch network constraining physical presence(p.147)
- • High operating expense ratio relative to income(p.191)
- • Significant geographic concentration risk in three states(p.254)
- • Accumulated losses carryforward from prior years(p.204)
- • Significant dependence on merchant network and transaction volume(p.253)
- • High operating expense ratio relative to income(p.260)
- • Employee attrition and retention challenges(p.255)
- • High dependence on deposit base growth creating significant liquidity obligations(p.267)
- • Negative cash flow from operating activities indicating operational challenges(p.268)
- • Outstanding litigation from major client HDFC Bank with significant contingent liabilities(p.277)
- • Rising interest expenses on deposits reducing profitability(p.263)
- • Increased provisions for doubtful debts indicating credit quality concerns(p.265)
- • Large addressable market in payments and CASA segments(p.15)
- • Government digitalization and financial inclusion initiatives(p.15)
- • Expansion into new geographies and untapped markets(p.34)
- • Product diversification including insurance and third-party services(p.34)
- • Leveraging open banking and API-driven partnerships(p.30)
- • Large addressable market in unserved and underserved segments(p.130)
- • Expansion of high-growth CASA and micro-ATM products(p.135)
- • Referral credit products with third-party NBFCs(p.135)
- • Cross-sell opportunities through merchant relationships(p.133)
- • Digital adoption momentum driving margins and customer engagement(p.135)
- • Deepening penetration in rural India with significant untapped potential(p.95)
- • Expansion into government welfare and subsidy distribution(p.149)
- • Growth in digital payment adoption accelerated by COVID-19(p.147)
- • Market tailwind from financial inclusion and banking to underserved segments(p.150)
- • Platform for launching new products leveraging data analytics(p.145)
- • Merchant network providing distribution for third-party financial products(p.144)
- • Strategic partnership expansion with large national networks(p.254)
- • Launching new digital payment products and channels(p.254)
- • Increased digital adoption driven by COVID-19 pandemic(p.255)
- • Expansion of customer base through government relief disbursement programs(p.255)
- • Underserved and unbanked market penetration opportunity(p.254)
- • Expansion of banking outlets network across geographies(p.284)
- • Launch of new products and services to diversify revenue streams(p.273)
- • Authorization to act as Bharat Bill Payment Operating Unit and expand payment services(p.284)
- • Expansion of referral services for financial products across partners(p.283)
- • COVID-19 pandemic impact on operations and revenue(p.24)
- • Intense competition from multiple banking and fintech players(p.34)
- • Dependency on external merchants and BCs for distribution(p.30)
- • Regulatory compliance and supervisory restrictions(p.27)
- • Cyber security threats and data breach risks(p.29)
- • External economic and macro factors affecting revenue(p.26)
- • Dependence on external financing and refinancing(p.35)
- • RBI licensing conditions and mandate restrictions(p.27)
- • Intense competition from established banks and emerging fintechs(p.99)
- • Regulatory changes affecting payment systems and commissions(p.99)
- • Technology disruption and emergence of web-only banks/neobanks(p.98)
- • Limited access to deposits in payment banks restricting growth(p.103)
- • High customer acquisition costs and merchant churn risks(p.135)
- • Rural areas characterized by low digital literacy and trust(p.100)
- • Intense competition from multiple banking and fintech players(p.150)
- • COVID-19 pandemic impact on business operations and merchant networks(p.147)
- • Regulatory restrictions on payments bank business scope(p.154)
- • Dependence on third parties for credit products and services(p.144)
- • Regulatory requirement for RBI approval on capital deployment and operations(p.153)
- • Intense competition from multiple banking and fintech players(p.254)
- • Stringent and evolving regulatory requirements(p.253)
- • Macroeconomic sensitivity and external economic factors(p.252)
- • COVID-19 pandemic and continued uncertainty(p.256)
- • Dependence on domestic remittance business with pandemic volatility(p.256)
- • Restrictions on credit products limiting revenue diversification(p.251)
- • COVID-19 pandemic significantly impacting domestic remittance and transaction volumes(p.262)
- • Interest rate risk from regulatory requirements to hold fixed-rate investments(p.271)
- • Operational risk from technology systems and potential service disruptions(p.271)
- • Regulatory restrictions on shareholding and business control requiring RBI approval(p.302)
- • Dependence on external partners and correspondents creating service continuity risks(p.271)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Fino PayTech Limited | Promoter Selling Shareholder | 100% | — |
| Fino PayTech Limited | Promoter | 100% | At least 51% (minimum capital prescribed by RBI) |
| Fino Paytech Limited | Promoter/Parent Company | — | — |
| Fino PayTech Limited | Promoter/Holding Company | 100% | — |
| FINO PayTech Limited | Parent Entity / Promoter | 99.99% | — |
| Fino PayTech Limited | Promoter/Promoter Group | — | — |
| Fino PayTech Limited | Promoter Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.