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Fino payments bank IPO, should you subscribe or avoid this IPO

The IPO of Fino Payments Bank is bringing the company's IPO in the Indian market. Fino Payments Bank IPO is opening for subscription on October 29th - 2021 and Fino Payments Bank IPO will close on November 2- 2021. Very few people know about Fino Payments Bank. The company's business is more established in Punjab State & Himachal State with multiple branches in business city Ludhiana, Jalandhar in Punjab and Baddi in Himachal State. As per Fino Payments Bank company presence of 94% of India's districts & having more than 6.4L banking outlets & 54 Bank Branches with 143 Customer Service Points. Fino Payments Bank was incorporated in the year of 2017. We can say that it is not much old banking setup but bank has Invested in & also by big banking sector names like  ICICI Bank. If we will talk about other big corporate like BPCL, Blackstone, IFC Fino Payments Bank has an enviable financial and distribution track record.  Fino Payments Bank's platform gives permission to access by mobile and desktop devices resulting in low or no investment. 

Fino payments bank IPO, should you subscribe or avoid this IPO

Fino Payments Bank IPO Details:

Fino Payments Bank IPO will be opened on 29th Oct 2021 with the Price band range of 560-577rs per share. It is a wholly owned subsidiary of Fino PayTech.  Fino Payments Bank management is looking to raise 12,00 crore through this IPO from the market. There will be 300crore of fresh issue & rest of 1.56 crore will be offer for sale by Fino PayTech.  Total of equity shares will be around 2.08 crore for this IPo. Shares of Employees portion will be reserved with Rs 3 crore.  As per the company management funds raised from this IPO will be used for meeting future capital requirements. 75%  of the IPo issue size is reserved for QIB’s Also includes  anchor investors & 10% for retail investors.  Rest of the portion is for non-institutional investors.

Also read : Nykaa IPO, should you susbrice for Bumper IPO listing

How many Lots a retail investo

r can apply for Fino Payments IPO:

Minimum of 25 equity shares are need to apply in 1 lot size.  The limit for the retail investors for making investment up to Rs 2 lakh in this IPO thee if investors want to apply for 1 lot of this IPO then he/she has to make  investment of Rs 14,425 and Rs 1,87,525 for a maximum of 13 lots for Fino Payments bank IPO.

Book running lead managers Of Fino Payments Bank IPO:

Nomura Financial Advisory and Securities (India), CLSA India, ICICI Securities, Axis Capital  are the book running lead managers of this IPO.

Should you subscribe Fino Payments bank IPO?

Fino Payments bank mainly deal with the small business but it has strong support from the big brands like ICICI Banks, BPCL, Blackstone & Intel technologies etc. Therefore it is expected that IPO will easy fully subscribed. But The question is that What is left on table for the retail investors? Here is the question arise. As per our view, Finao payemtns bank IPO higher price band of 577rs looks expensive. But the presence of big investors is supporting this IPO. The Indian government had announced some time ago that if the payments bank is offering free services to the customers, then the payments bank will have to pay tax on it. Rishi Gupta, MD and CEO of this Fino Payments Banks had said that it is difficult for banks to offer all services free of cost and if tax has to be paid on it, then it is not a good thing for payments banks. Ever since the government's KYC rules have been made mandatory, the decline in digital payments is also being seen. Fino payments bank is into Saving accounts, current accounts, Fastag, UPI payments in other services etc. There is big competition in this segment. It is small payments bank. There are lot of Opportunities are available into the Indian stock market of listing space. Company reports profit of 20cr in the march 2021 but in the March 2019 Fino payments bank had reports more than 62cr loss. If we will skip March 2021 profit year of the company then Fino payments bank has reports loss in the March 219, March 2020.

We have also seen sudden jump into the company revenues in the march 2021 which reached at 791cr as compared to 371cr revenues in March 2019.  Therefore if any investor is just applying for the listing gains then we can say that other listed companies of small banks are available into the Indian stock market at lower price. Long term investors should wait for listing of the Fino Payments bank IPO. Investors may get discounted price of Fino payments bank IPO after listing. If traders want to apply Fino Payments Bank IPO for the listing gains then It will not easy to get much premium in Fino Payments IPO or we may see At par listing.  Grey market premium of Fino payments bank IPO is not much impressive.

Recommendation on Fino payments IPO:

 High risk. Investors may avoid this IPO. Traders may take risk with small lot otherwise traders may also avoid it.


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