Fino Payments Bank IPO Gains Momentum On Final Day, Booked 2 Times

The initial public offering of (IPO) Fino Payments Bank whose public offering was witnessing lukewarm response from investors across categories other than the retail investors for the most part of the three-day offer, finally, was able to sail through and was subscribed 2.03 times.

Investors placed bids for 2,32,46,150 shares, compared to 1,14,64,664 shares on offer. Over half the overall bids were placed by the retail individual investors. 

• Retail investors bid for 1,22,93,975 shares, against the allocated portion of 20,75,031 shares, thereby subscribing 5.92 times.
• Qualified Institutional Buyers (QIBs) who had hardly placed bids till the second day of the offer pitched in today and subscribed the shares by 1.65 times. They placed bids for 1,02,40,525 shares, while 62,25,094 shares were put aside for institutional investors.
• However, non-institutional investors (NII), including the corporates and individuals (other than retail investors), did not show much interest, and only 21% or 0.21 times of the earmarked shares were subscribed. NIIs placed bids for only 6,63,350 shares out of the 31,12,546 shares on offer.
• The employee reserved portion has also not been fully subscribed. Out of the 51,993 shares allocated for employees, bids were placed for 48,300 shares, recording a subscription of 0.93 times.

Its shares are expected to be listed on the Indian stock exchanges in the next 10 days.

Manan Doshi of Unlisted Arena was of the view that although the payments bank has a unique business model differentiating itself from traditional banking players targeting un-banked population and it has been expanding rapidly in lower-tier cities and villages, “pricing of the issue looks on the higher side as it’s a turnaround company which has just started posting profits.”

‘It would be interesting to watch how the bank leverages the growth with its unique approach going forward,” he added.

The IPO opened at a price band of INR 560 – INR 577 per share in a bid to raise up to INR 1,200.3 Cr.

On Thursday (October 29), Fino Payments Bank raised INR 538.78 Cr from anchor investors. It allocated over 93.37 Lakh shares to 29 anchor investors, including Invesco, Pinebridge Global Funds and HSBC

Fino Payments Bank began its operations in June 2017, after its parent Fino Paytech received a nod from RBI for setting up a payments bank. It competes with Paytm Payments Bank, Airtel Payments Bank, and Jio Payments Bank.

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