Fino Payments Bank IPO: Retail Portion Fully Subscribed, QIBs & Non-Institutional Investors Yet To Pitch In

Fino Payments Bank IPO: Retail Portion Fully Subscribed, QIBs & Non-Institutional Investors Yet To Pitch In

After the blockbuster opening of beauty unicorn Nykaa’s initial public offering, the IPO of Fino Payments Bank has received a mix response from investors. While the retail portion has been fully subscribed within the first hour of the offer, the QIB and non-institutional investors are yet to pitch in.

As of 11:30 am, the retail individual investors (RII) have bid for 24,93,750 shares against the 20,75,031 shares allocated to them, thereby subscribing to the allocated shares 1.20 times.

The overall offer has been subscribed 0.22 times or 22%. A total of 1,14,64,664 are on offer, and bids have been received for 25,09,875 shares, BSE data showed.

The qualified institutional buyers (QIBs) and non-institutional investors who have been allotted 62,25,094 and 31,12,546 shares, respectively, are yet to pitch in with their bids. Traders said that QIBs are expected to place their bids largely on the third day of the offer. 

The portion reserved for employees has been subscribed 4% or 0.04 times in the first hour of the offer. Employees have bid for around 2,205 shares, out of the earmarked 51,993 shares.

Yesterday, Fino Payments Bank raised INR 538.78 Cr from anchor investors. It allocated over 93.37 Lakh shares to 29 anchor investors.

“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  has opened, at the price band of INR 560 – INR 577 per share and will end on November 2. 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 and Blackstone owns 14% stake in the fintech firm.

The other key investors include 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.

The post Fino Payments Bank IPO: Retail Portion Fully Subscribed, QIBs & Non-Institutional Investors Yet To Pitch In appeared first on Inc42 Media.


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