Fino Payments Bank IPO: Apply only for long term, says Anil Singhvi

The initial public offering (IPO) of Fino Payments Bank is opening for public subscription from today, October 29. The three-day IPO will conclude on November 2 (Tuesday). It comes only a day after cosmetic e-tailer Nykaa opened for subscription on Thursday.

The company has fixed a price band of Rs 560-577 per share for this issue and Investors will be able to bid for a minimum of 25 equity shares and in multiples of 25 thereafter.  
Fino Payments Bank, a digital-backed lender, aims to raise Rs 1,200 crore from the issue. The issue comprises fresh equity shares worth Rs 300 crore and an offer for sale (OFS) of 15,602,999 equity shares by promoter Fino Paytech.

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The company has reserved 75 per cent of the total issue for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and the remaining 10 per cent for retail investors.

Should you subscribe?  

As the Fino Payments Bank IPO opens today, Zee Business Managing Editor Anil Singhvi has said that one should apply in this IPO only with long term objective.  

Explaining what's working for this IPO, the market guru said there are many positives, including big Investors and strong Anchor Book. Besides, Strong growth track record, positive outlook and profit-making startup are other positives about this company.  

Singhvi says highly competitive business and risk of change in government policies may pose some problem for the company.  

Fino Payments Bank Timeline:  
Application start date: October 29
Application closing date: November 2
Allotment beginning date: November 9
Refund initiation date: November 10
Allotment date: November 11
Listing date: November 12
Source: Upstox

About the company  
Incorporated in 2007, Fino Payments Bank is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have payments focus. The company is wholly-owned subsidiary of Fino Paytech. The bank offers products and services to its target market that are an unserved and underserved population of Indian society through the pan-India merchant network.