Fino Payments Bank on Thursday said it has garnered Rs 539 crore from anchor investors ahead of its initial share sale that opens for public subscription on Friday.
The company has decided to allocate a total of 93,37,641 equity shares to 29 anchor investors at Rs 577 apiece, aggregating to Rs 538.78 crore, according to a circular uploaded on BSE website.
Fidelity, HSBC Global, Pinebridge, Aditya Birla Sun Life Mutual Fund (MF), Tata Mutual Fund, SBI Life Insurance Company, Invesco, BNP Paribas and Societe Generale, among others, have been allotted shares.
The initial public offer (IPO) includes a fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.
The offer includes a reservation of Rs 3 crore worth of shares for the company's eligible employees. The issue, with a price band of Rs 560-577 a share, will open on October 29 and conclude on November 2. At the upper end of the price band, the initial share-sale is expected to fetch Rs 1,200.3 crore.
Proceeds from the fresh issue would be used towards augmenting the bank's Tier – 1 capital base to meet its future capital requirements.
Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter.
The company said that up to 75 per cent of the total offer has been reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 per cent for retail investors.
Here is what industry experts have to say, according to Business Insider.
Religare Broking
Fintech companies' demand is poised for growth on the back of rising internet penetration, higher disposable income, development of technology, low-cost infrastructure, government initiatives like UPI, etc. Going forward, India presents a huge opportunity for the growth of fintech. There will be huge growth potential for players in payments, lending, wealth, Insurance, etc. segments. We believe Fino Bank is one of the key beneficiaries of opportunities in the sector.
BP Equities
The company exists in a stiff competitive environment where companies like PayTM Payments Bank and India Post Payments bank exist and outperform in many aspects. We thus believe that the current growth momentum is difficult to sustain in the long term. Hence we give an “AVOID” rating to this IPO.
Jyoti Roy of Angel One
Despite strong growth prospects, we believe that valuations do not justify the premium and hence we have a NEUTRAL recommendation for the IPO.
(With PTI Inputs)
