Fino Payments Bank IPO to open on October 29 - Marwadi Shares and Finance recommends subscription; check reasons here

Fino Payments Bank is launching its initial public offer (IPO) on October 29, 2021. This is the only payments bank to offer a subscription based savings account in India, Fino Payments Bank Limited's offer will close on November 02, 2021 and the company has fixed the price band at Rs 560-577 per equity share.

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Fino Payments Bank Limited is a growing fintech company offering a diverse range of financial products and services that are primarily digital and have payments focus. The company’s products and services include various current accounts and savings accounts (CASA), issuance of debit card and related transactions, facilitating domestic remittances, open banking functionality (through their Application Programming Interface), withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System) and cash management services (CMS).

The company operate an asset light business model that principally relies on fee and commission-based income generated from the merchant network and strategic commercial relationships. Each merchant serves the banking and financial needs of its community, which in turn form the backbone of the assisted-digital ecosystem, referred to as 'phygital' delivery model. The company have a strong leadership position within the Indian fintech industry, for instance It was ranked third among banks in facilitating digital transactions, as of February 2020 by the Ministry of Electronic & Information Technology; and had the largest network of micro-ATMs, as of August 2021.

In the FYs 2019, 2020 and 2021, the company’s platform facilitated approximately 154.02 million, 318.56 million and 434.96 million transactions, respectively and had gross transaction value of 456,847.97 million, 944,525.76 million and 1,329,306.90 million, respectively.

Marwadi Shares and Finance has recommended to subscribe the Fino Payments Bank IPO.

Rating: Subscribe

Issue Open              29 Oct 2021, Friday
Issue Close              02 Nov 2021,Tuesday
Issue Type               Book Built Issue IPO
Issue Size                 Fresh Issue: 5.20 million eq shares (Rs 3,000 million)
                                  OFS: 15.60 million eq shares (Rs 9,002.93 million)
Face Value               Rs 10
Issue Price Band     Rs 560-577
Listing at                   NSE, BSE
Minimum Lot Size       25 Shares

Marwadi Shares and Finance has mentioned that "Considering the TTM (June 2021) adjusted BVPS of Rs 54.52 on the post-issue basis, the company is going to list at a P/B of 10.58 with a market cap of Rs 48,015 million. There are no listed companies in India whose business is comparable with that of the company’s business."

"We assign a 'Subscribe' rating to this IPO as the company has an asset-light and scalable business model with operational experience and expertise. Also, it has a unique DTP (Distribution, Technology, Partnerships) framework that enables it to serve the target market efficiently," Marwadi Shares and Finance added.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)