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Saturday, July 31, 2021

Blackstone, ICICI Group And BPCL Backed Fino Payments Bank Files For Rs 1,300 Cr IPO; First By A Profitable Fintech Firm - Moneycontrol.com

Bengaluru-based Unacademy had on July 26 announced acquisition of live game streaming platform Rheo TV. (Representative image)

Bengaluru-based Unacademy had on July 26 announced acquisition of live game streaming platform Rheo TV. (Representative image)

Mumbai-based Fino Payments Bank which is backed by numerous marquee investors including BPCLICICI Group, Blackstone, IFC and Intel Capital has filed its DRHP with market regulator Sebi to raise around Rs 1300 crores via an initial public offer, multiple industry sources with knowledge of the matter told Moneycontrol.

Moneycontrol was the first to report the firms listing plans on March 6th, 2021.

Fino Payments Bank turned profitable in the fourth quarter of FY 20 and the move makes it the first profitable fin-tech to file for an IPO. It counts Airtel Payments Bank, Indian Post Payments Bank, Paytm Payment Bank, Jio Payments Bank & NSDL Payment Bank as its rivals.

“The IPO size is likely to be around ₹1,300 crores which includes a fresh issue component of ₹ 300 cr as well as an OFS component,” according to market sources who added that a digital based ,transaction focused approach with no credit risk has enabled the growth of the firm.

Investment bankers appointed to the issue are Axis Capital Ltd, CLSA India Pvt Ltd, ICICI Securities Ltd and Nomura Financial Advisory Services Pvt Ltd. According to the DRHP, Trilegal is the legal counsel to the bank and promoter selling shareholders and Shardul Amarchand Mangaldas is the legal counsel to the investment bankers. Sidley Austin is the international legal counsel.

ALL ABOUT FINO PAYMENTS BANK

Fino Payments Bank is a scheduled commercial bank serving the emerging India market and the company is a fully owned subsidiary of Fino Paytech Limited (FPL), a pioneer in technology enabled financial inclusion solutions.

Over the last few years, Fino Payents Bank has witnessed a steep surge in transaction volumes on the back of digitization and proliferation of its banking points.

As stated in the DRHP, in FY21 the payment bank’s platform has facilitated more than 434 million transactions having a gross transaction value of Rs 1.32 lakh crores. It has a strong position in the fintech industry having the largest network of micro ATMs as of March 2021 with a market share of 55%, a merchant network of 6.4 lakhs and 25.7 lakh bank accounts. Its revenue for FY21 stood at ₹791 crores that grew at a CAGR of 29% in last three years. The bank registered a profit of ₹20.5 crores in FY21 with an annual average ROE of 15%, the DRHP states.

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Blackstone, ICICI Group And BPCL Backed Fino Payments Bank Files For Rs 1,300 Cr IPO; First By A Profitable Fintech Firm - Moneycontrol.com
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