Fino Payments Bank IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Fino Payments Bank IPO– incorporated in 2007 and it offers a diverse range of financial products and services that are primarily digital and have a payments focus. The company is a fully-owned subsidiary of Fino Paytech. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).

Business — The company has a pan-India distribution network and its’ major products and services includes:
• Current accounts and Savings accounts (CASA),
• Issuance of debit card and related transactions,
• Facilitating domestic remittances,
• Open banking functionality (through their Application Programming Interface),
• Withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System (AePS) and
• Cash Management Services (CMS).

The company’s merchants facilitate them in cross-selling their other financial products and services such as third-party gold loans, insurance, bill payments and recharges. Fino Payments also manages a large BC (Business Correspondents) network on behalf of other banks.


Offer purpose —  

300 cr of fresh equity and 900 cr of offer for sale of existing shares. Augmenting Bank’s Tier – 1 capital base to meet its future capital requirements.


High competitive landscape

Payments banks cannot undertake lending activities restricting their growth, They can accept only savings and current deposits. The aggregate limit per customer is Rs 2,00,000. They are required to have a minimum of 25 per cent of their physical access points in rural areas.

Geographical concentration also poses a risk


Unique DTP (Distribution, Technology, Partnership) network helps in better customer servicing

Focus on technology development and in-house technological expertise

Customer centric and innovative business model

Highly experienced management team

Vision of socially inclusiveness and empowerment

High market share in the Micro-ATM segment


The bank’s unique DTP (distribution, technology and partnership) framework, technological expertise and merchant-led distribution model enable it to reach a vast number of customers in under-penetrated markets while keeping its costs low.


Valuations are really high and looking at growth prospects , it will take time for valuations to become reasonable

Should we apply?

One can avoid and wait for significant dip to enter. Also keep in mind better choices available in market for investment

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

Posted by

#Investor # Reader #Marathoner #Cyclist #Foodie #Traveler #Helping people in Finances

2 thoughts on “Fino Payments Bank IPO : Subscribe or NOT?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s