Fino Payments Bank Raises INR 538.78 Cr From Anchor Investors

A day ahead of its initial public offering (IPO), Fino Payments Bank has raised INR 538.78 Cr from anchor investors.

The Mumbai-based fintech startup has allocated over 93.37 Lakh shares to 29 anchor investors on Thursday.

“Under Anchor Investors (AIs) portion in the Public Issue of Fino Payments Bank Limited, 93,37,641 equity shares have been subscribed today at Rs 577/- per equity share,” it said.

Major global investors who allocated shares under the anchor investor portion are Fidelity International, Invesco, Pinebridge Global Funds, HSBC.

“Out of the total allocation of 9,337,641 equity shares to the anchor investors, 3,646,425 equity shares were allocated to 5 domestic mutual funds through a total of 17 schemes,” said the filing. The mutual funds which were allotted shares include Motilal Oswal MF, Aditya Birla Sun Life Trustee and Tata Mutual Fund.

The Fino Payments Bank’s IPO opens on Friday, October 29, at the price band of INR 560 – INR 577 per share and will end on November 2.

It received the SEBI’s nod for its IPO earlier this month. The offer would consist of a fresh issue of shares worth up to INR 300 Cr and an offer for sale of up to 15,602,999 equity shares. The OFS would also include a portion of stocks reserved for employees aggregating up to INR 3 Cr, according to Fino’s red herring prospectus (RHP).

At the given price band for the IPO, the company aims to raise up to INR 1,200.3 Cr.

The payments bank is a wholly-owned subsidiary of Blackstone-backed Fino PayTech. Blackstone owns 14% stake in the fintech firm.

The other key investors are the fintech ICICI Bank Limited (4.63%), Intel Capital Corporation(5.55%), International Finance Corporation(7.57%), HAV3 Holdings (Mauritius) Limited(11.16%) and Bharat Petroleum Corporation Limited (22.92%). 

Founded in 2007, Fino PayTech received the Reserve Bank of India’s (RBI) approval to set up a payments bank in September 2015. The payments bank began its operations in June 2017, and it competes with Paytm Payments Bank, Airtel Payments Bank, Jio Payments Bank.

In its prospectus for the offering, Fino Payment Bank said that its promoter, Fino PayTech will be entitled to the proceeds of the offer for sale, and the bank will not receive any proceeds from the OFS.