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Fino Payments Bank IPO Subscribed 75%, Retail Portion Booked 4 Times

Fino Payments Bank IPO Subscribed 75%, Retail Portion Booked 4 Times

Qualified institutional investors (QIB) have just bid for 700 out of the 62,25,094 shares allocated

Retail individual investors (RII) have been at the forefront, with 4.06 times subscription

At the price band of INR 560 – INR 577 per share, Fino aims to raise up to INR 1,200.3 Cr.

The initial public offering (IPO) of Fino Payments Bank has entered the second day. Still, it is yet to catch steam as qualified institutional investors (QIB) have just bid for 700 out of the 62,25,094 shares allocated. 

The offer has so far been subscribed 0.75 times or 75%, backed by robust demand from retail investors. According to BSE data, out of the total 1,14,64,664 shares on offer, investors have subscribed to 86,33,650 shares.

  • Retail individual investors (RII) have been at the forefront, with 4.06 times subscription. They have placed their bids for 84,03,625 shares, compared to the 20,75,031 shares on offer.
  • The shares reserved for employees have been subscribed 0.41 times. Out of the 51,993 allocated shares, employees have placed their bids for 21,375 shares.
  • Non-institutional investors, comprising corporates and individuals other than retail investors, have subscribed to 2,22,200 shares (0.07 times or 7%) out of the earmarked portion of 31,12,546 shares.
  • The institutional investors who have been allocated around 54% of the total offer have been lagging the most so far with a negligible subscription. However, they are expected to place their bids mostly on the third day of the offer (November 2).

On the first day of the offer (October 30, Friday), the Fino’s IPO was subscribed 0.51 times or 51%.

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.

The Fino Payments Bank’s IPO  had opened at a price band of INR 560 – INR 577 per share. At the given price band, the company aims to raise up to INR 1,200.3 Cr.

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. 

The payments bank competes with Paytm Payments Bank, Airtel Payments Bank, and Jio Payments Bank.