Fino Payments Bank IPO opens today: Check GMP, subscription status, price and more details

Fino Payments Bank’s ₹1,200-crore initial public offering (IPO) has opened for subscription on Friday and its three-day placement on the market for sale will continue till November 2. As per the company, the fixed price band is in the range of ₹560-577 per share. Before being placed on the market, the company said on Thursday that it has already amassed over ₹539 crores solely from its anchor investors.

As per the market details on the BSE data of day 1, Fino Payments Bank IPO has already been subscribed 0.33 times along with its retail portion fully booked at 1.79 times. As the qualified institutional buyers (QIBs) have not placed their bids as of now, the Non-Institutional Investors (NIIs) have bid 0.01 times already. The share sale also has a fresh issue of equity shares worth ₹300 crores and an offer for sale (OFS) of 15,602,999 equity shares by the promoter Fino Paytech.

Popular market analyst Jyoti Roy of Angel One said regarding the Fino payments, “Fino Payments Bank has posted a 46.0% CAGR in total revenues between FY2019-21 and has also turned around its operations and reported profits of Rs. 20 crores for the first time in FY2021. At the higher end of the price band, the stock would be trading at P/E of 220x FY2021 fully diluted EPS of Rs. 2.6 which is expensive. Despite strong growth prospects, we believe that valuations do not justify the premium and hence we have a NEUTRAL recommendation to the IPO.”

Fino Payments Bank’s rating on the exchange

As per the company, the capital collected from the fresh issue would be utilised to increase the bank’s capital base so that it can cover capital needs in the future. Investing companies like Axis Capital, CLSA India, ICICI Securities and Nomura Financial Advisory Services are the probable lead investors to the issue. The fresh issue has been tagged as a suitable option for long-term investment due to its history of stability. Fino Payments Bank is a commercial bank with digital financial services for its clients in the Indian market and has become the first payments bank to be listed on the stock exchange.

Image: Twitter/FinoPayments-Shutterstock