Fino Payments Bank Limited IPO Review

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Fino Payments Bank was founded in April 2017. It is one of the fastest-growing and expanding fintech and financial firm in the country. The Company has a wide and diversified portfolio of services. The services are majorly in digital financial products along with the services with a strong focus on payments. Checkout Fino Payments Bank IPO price, size and more details.

Fino Payments Bank has a vast pan-India distribution network. The business operation of the Company is divided into the various category:

  • Cash Management Services (CMS).
  • Current accounts and Savings accounts (CASA)
  • Open banking functionality through their API- Application Programming Interface
  • Issuance of debit card and related transactions
  • Facilitating domestic remittances
  • Withdrawing and depositing cash via micro-ATM or Aadhaar Enabled Payment System (AePS)

The major investors of the Fino Payments Bank are ICICI Bank, BPCL and Blackstone. At the current level, the Bank has 6.41L banking facilities with 54 Bank Branches. It also has 143 Customer Service Points, and these customer service points are available across 94 per cent of India’s regions.

Fino Payments Bank has a low-asset company model. The model is such that the Company relies majorly on fee and commission income. It comes from the targeted commercial agreements and the merchant networks. The Company has a mix of physical and digital delivery models. It has been named as “PHYGITAL” delivery mode. It is the backbone of the assisted digital ecosystem of the Company. Along with their primary business, the Company is also engaged in third-party gold loans, bill payments, insurance, and recharges. It also manages a large amount of Business Correspondents network for other banks.


  • Prepayment of all the loans of the Company, which will be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.
  • The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting their Bank’s Tier – 1 capital base to meet their Bank’s future capital requirements.


  • The Company follows a DTP structure, which is the core business model of the Company. 
  • It works on an innovation-driven organization model, which is supported by the digitalization in its operation.
  • The main focus of the Company’s business is customer-centricity and inventiveness. 
  • An asset-light and extensible plan of action. 
  • Experience along with the required competence in the sector. 
  • Model that is socially comprehensive and has a valuable social effect. 
  • The team of directors and senior management group is extremely talented and devoted.
  • The Company has a strong investor base as their current investors and promoters.


Fino Payments Bank has its headquarters in Mumbai. The Bank submitted its DRHP to SEBI. Currently, the Bank is waiting for approval from SEBI to float its IPO in the market. The IPO of the Company is Rs.1300 Crore. The IPO is divided into two segments. It consists of fresh equity of Rs.300 Crore and an OFS of up to 15,602,999 equity shares. The promoter group of the Company brings forward the OFS. 

The Company will also carry out a pre-IPO placement offer. The offer will be up to Rs 60 crore. The Pre-IPO allotment is inclusive of the overall IPO offer as been stated by the Company.

IPO Opening DateOctober 2021
IPO Closing DateOctober 2021
Issue TypeBook Building Type
Face ValueRs. 10 / Equity share
IPO Price 
Market Lot 
Min Order Quantity 
Listing AtBSE, NSE
Issue SizeRs.1300 Crore
Fresh IssueRs. 300.00 Crore
Offer for Sale15,602,999 Equity shares
Basis of Allotment DateOctober 2021
Initiation of RefundsOctober 2021
Credit of Shares to Demat AccountOctober 2021
IPO Listing DateOctober 2021
Basis of Allotment Type% Of IPO Offer
Qualified Institutional Buyer75
Non-Institutional Investor15


  • In 2020, Fino payments Bank was ranked third among all banks facilitating digital transactions in India. The award was given by the Ministry of Electronics & Information Technology.
  • The Company has the largest network of micro-ATMs in India.
  • The Company also registered the third-highest deposit growth rate in 2021.
  • The main focus of their business operation is on “emerging India”, and it caters to the emerging and rapidly growing population.
  • The Company also recorded a steady improvement in throughput volumes. It is the gross value of transactions. It helped the Bank to turn into a profit-making company. These throughput volumes recorded an increase to Rs. 1,00,200 crores in FY20 from Rs. 50,400 crores in FY19.
  • The Company also improved Return on Average Total Assets (RoA) and Return on Average Net Worth (RoNW). The values improved from to -10.21% and -38.48%, to -4.90% and -24.63% respectively in FY20.
  • The Company offers a Healthy product diversification with Pan-India geographical reach. 
  • The Company doesn’t rely heavily on any one business setup, which contributes to its revenue and margins. The Company’s major source of net revenue is micro-ATMs, and it accounted for 36% of the total net revenue in FY2020. After this, BC banking registered revenue of 28%; the other share is from remittances (16%) and the remaining 20% from other services.


  • The COVID-19 had adverse consequences on the Company’s business operation and margins.
  • The Bank is engaged in expense and commission-based tasks. Due to it the financial performance and exhibition could be affected if they can’t gather income from these sources. 
  • The Company depend intensely on their data innovation and IT support stages. Any defect or disappointment in such frameworks, also as a breach in their database system, could contrarily affect the operation of the business.
  • The Company has launched new services and products, and the main issue is regarding the efficiency of these new services and products.
  • The Bank is engaged in a business where the whole industry is highly competitive. The development and growth technique of the Company is dependent upon its capacity to contend effectively. 
  • The Company depends on brand acknowledgement, and neglecting to keep up with and develop brand mindfulness would negatively affect the business. 
  • Negative results in legal and judicial trials might affect the organization in terms of the belief of the customers, business operation and financial parameters.
  • In explicit cases, RBI has the power to excuse any representative or administrative individual. Also, RBI holds power to supersede their Board of Directors. 
  • The Company posted a loss in the financial year 2019 and 2020. As a result, their business outlook looks very critical.
  • The Company has a Weak profitability ratio.
  • Fino Payments Bank has a High operational risk considering that it is engaged in high cash handling activities and the external merchant/agent-driven business model.
  • Another challenge for the Bank is the ability to retain its merchants, agents and customers. 
  • The Bank also needs to focus on raising capital to meet its funding requirements for growth.
ParticularsFor the year/period ended (in Cr.)
Total Assets1,010.29624.00684.07
Total Revenue791.03691.40371.12
Profit After Tax20.47– 32.04-62.38
   ROA (%)2.51-4.90151.15
   ROE (%)14.59-21.93166.54
   ROCE (%)8.94-10.26187.14
   Core Operating Income Growth (%)29.67-39.36175.38
   Operating Profit Growth (%)126.0938.30229.24
   Net Profit Growth (%)163.9148.65236.94
   BVPS Growth (%)15.74-19.76179.65
   Advances Growth (%)29.4127.506.95
   EPS Growth (%)163.9148.65236.94
  • In FY21, the tier 1 capital ratio of the Company was at 56.25%.
  • The Bank recorded 434.96 million transactions. The gross value of the transactions been performed was at ₹1.33 trillion in March 2021. 
  • In the quarter ending in Sept. 2020, the Company opened up 297,774 new CASA accounts. The Company also recorded a 20% expansion in CASA accounts been opened up in March 2021.
  • The deposits in FY21 of the Company increased by 106.6%. The current value of these deposits is ₹2.43 billion.


The promoter of the company is the Fino Pay-Tech Limited.

Pre-Issue Share Holding100%
Post Issue Share Holding


Fino Payments Bank Limited
Mindspace Juinagar, Plot No Gen 2/1/F, Tower 1, 8th Floor, TTC Industrial Area,
MIDC Shirwane, Juinagar, Navi Mumbai – 400 706
Telephone: +91 22 7104 7000


KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222


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  • ICICI Securities Limited
  • Nomura Financial Advisory and Securities (India) Private Limited


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