Fino Payments Bank IPO - Rs 1300 cr to be raised from primary market as Company files preliminary papers with SEBI

Fino Payments Bank on Monday filed Draft Red herring Prospectus (DRHP) with Securities and Exchanges Board of India to raise around Rs 1,300 crore through an initial public offer (IPO).

According to the DRHP papers, the IPO includes, a fresh issue of equity shares worth Rs 300 crore and an offer-for-sale of 15,602,999 equity shares by promoter Fino Paytech.

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The net proceeds from the fresh issue would be used towards augmenting the bank's tier-1 capital base to meet its future capital requirements, the preliminary paper filed with markets regulator says

The financial company is likely to consider a pre-IPO placement aggregating up to Rs 60 crore, wherein the IPO size will eventually reduce if such placement is done.

Fino Payments Bank is a scheduled commercial bank serving the emerging India market with its digital based financial services.

The company is a fully-owned subsidiary of Fino Paytech, a pioneer in technology-enabled financial inclusion solutions. Fino Paytech is backed by investors like Blackstone, ICICI Group, Bharat Petroleum, and International Finance Corporation (IFC).

Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory Services have been appointed as investment bankers to advise the bank on the IPO.

Fino Payments Bank has seen a huge surge in transaction volumes on the back of digitization and proliferation of its banking points over the last few years.

The payments bank's platform has facilitated more than 434 million transactions with a gross transaction value of Rs 1.32 lakh crore in the financial year 2020-21, as per the draft papers.