Fino Payments Bank (FPBL) has filed the draft documents with capital markets regulator Sebi for an initial public providing (IPO).
The situation incorporates a Fresh Issue of equity shares aggregating upto Rs 300 crore and an give for sale (OFS) of upto Rs 1.56 crore of equity shares, according to the draft red herring prospectus (DRHP) paper filed.
The Mumbai-based bank, a wholly-owned subsidiary of Fino Paytech Limited (FPL), is aiming to raise about Rs 1,300 crore through IPO, as per industry sources.
FPBL had turned lucrative at the operating level in FY2019-20. It is backed by marquee investors such as ICICI Bank, Intel Capital Corporation, International Finance Corporation, Blackstone and BPCL, amongst other folks.
Notably, in an interview with FE in May this year, Rishi Gupta, MD and CEO, Fino Payments Bank, had stated, “The global and domestic environment for profitable payments banks is quite conducive for listing in the next 12-24 months.”
The bank’s net profit stood at Rs 20.47 crore for the last economic year as compared to a net loss of Rs 32.04 crore for the prior economic year.
In the DRHP paper, the bank stated its focus on and use of technologies all through it small business is a important issue in enhancing operating leverage, as it makes it possible for the firm to enhance gross margins and limit variable expenses.
“It plays a key role in our ability to expand our reach throughout India without incurring the relatively higher costs associated with traditional bricks and mortar branch presence,” the bank stated.