FINO Paytech is a leading provider of last mile banking solutions. In August 2015, the company got a payment banking license from RBI. Fino Paytech is the promoter of Fino Payments Bank. Preipo finopaytech share price is around Rs 165 – 170 per share.
In mid-November 2021, the Fino stock hit an all time high and was trading in the range of Rs 400 to 425 in the unlisted space when its subsidiary Fino Payments Bank made a debut on the bourses. It’s all time low is around Rs 75.
Fino Payments Bank provides services to unpenetrated rural India via a network of 0.81 million merchants. The Mumbai-based fintech operates on an asset-light business model that principally relies on fee and commission-based income generated from merchant network and strategic commercial relationships.
In July 2016, Government-owned oil marketing company Bharat Petroleum Co Ltd (BPCL) picked up a 21% stake in the company for Rs 251 crore in an all-cash deal.
Fino Paytech is backed by marquee investors like Bharat Petroleum, ICICI group, Blackstone, IFC, Intel and LIC among others. The lender enjoyed a 55 per cent market share in micro-ATMs in FY21.
There is currently a unique and attractive pre-IPO investment opportunity available in this company. For buying shares of FINO Paytech or any other companies, please call on 8108303330
Fino Paytech Unlisted Shares details –
Face Value – Rs 10
ISIN – INE511I01011
PAN Number – AAACF9869M
CIN – U72900MH2006PLC162656
Available in Depository – CDSL & NSDL
Registered Office – Mindspace Juinagar, 9th Floor, Plot No. Gen 2/1/F, Tower 1,TTC Industrial Area, MIDC Shirwane, Juinagar Navi Mumbai Thane Maharashtra 400706
FINO PayTech Limited is the largest business correspondent in India offering a bouquet of financial services at low cost on a secure, trusted and robust technology platform. The company is present in 499 districts across 28 states In India. Fino Paytech, with over 78 million customers, is the largest smart cards issuer through the branchless banking model
Business Correspondent (BC) – The business correspondent [BC] model is a low cost alternate Technology: Low cost platform agnostic technology, which is banking channel that rests on robust technology to serve the accessible through hand-held devices, Micro-ATMs and Ultra bottom of pyramid population at their doorstep.
Financial Performance (Figs in Rs)
| Particulars | FY 2022 | FY 2021 | FY 2020 |
| Total Income/(Loss) | 8,41,63,55,778 | 22,33,85,739 | 64,14,21,158 |
| Profit/Loss after Tax | 5,23,63,85,569 | -15,48,62,127 | 8,05,98,373 |
| Equity Share Capital | 1,09,40,71,560 | 99,62,81,110 | 98,90,76,110 |
| Preference Share capital | 23,83,12,150 | 23,83,12,150 | 23,83,12,150 |
| Reserves and Surplus | 3,78,59,86,740 | -1,45,26,77,991 | -1,29,23,59,828 |
| Fixed Assets | 3,97,00,918 | 4,31,90,000 | 4,97,14,901 |
| Net Worth | 11,83,58,39,422 | 5,74,66,15,545 | 5,87,16,12,004 |
| Total Debt | 71,29,274 | 71,16,614 | 4,73,08,970 |
Top management of Fino Paytech limited: Fino Paytech is led and managed by visionary leaders – experts who excel in their respective fields. They bring in extensive experience ranging from 13 to 20 years, having previously held prestigious positions at reputed global organisations. Its Board of Directors comprises various experienced professionals from leading financial institutions such as The BlackStone Group, HAV3 Holdings, The International Finance Corporation, and ICICI Bank Limited.
Rishi Gupta – MD & CEO
Ashok Kasaragod Kini – Chairman & Independent Director
Sudeep Gupta – Whole-time Director
Fino Paytech Shareholding Pattern (as on 31 March 2022):
| Name of the Shareholders | No. of Equity | No. of Preference | Total Shares | % of |
| Shares | Shares | Shareholding | ||
| Bharat Petroleum Corporation | 2,92,71,759 | – | 2,92,71,759 | 21.97 |
| Blackstone GPV Capital Partners (Mauritius) VI-B FDI Limited | 75,12,207 | 1,12,68,311 | 1,87,80,518 | 14.1 |
| HAV 3 Holdings (Mauritius) Limited | 74,56,993 | 67,97,990 | 1,42,54,983 | 10.7 |
| ICICI Prudential LifeInsurance Company | 1,13,28,854 | – | 1,13,28,854 | 8.5 |
| ICICI Bank Ltd. | 99,19,118 | – | 99,19,118 | 7.44 |
| International Finance Corporation | 65,69,567 | 31,04,350 | 96,73,917 | 7.26 |
| Intel Capital Corporation | 44,33,449 | 26,60,564 | 70,94,013 | 5.32 |
| ICICI Lombard General Insurance Company Limited | 67,89,194 | – | 67,89,194 | 5.1 |
| Union Bank of India | 45,00,000 | – | 45,00,000 | 3.38 |
| Exide Life Insurance Company | 28,32,213 | – | 28,32,213 | 2.13 |
| Life Insurance Corporation of India | 22,50,000 | – | 22,50,000 | 1.69 |
| Indian Bank | 22,50,000 | – | 22,50,000 | 1.69 |
| Individuals/ Public | 1,40,60,851 | – | 1,40,60,851 | 10.55 |
| Fino Trusteeship Services Limited | 2,32,951 | – | 2,32,951 | 0.17 |
Bharat Petroleum Corporation Limited (BPCL), one of the country’s leading public sector undertakings, is the largest stakeholder in Fino Paytech with a shareholding of 22.91%, followed by Blackstone, HAV 3 Holdings, ICICI Prudential and others.
“FINO Paytech model dovetails mainstream banking witn least cost technology and intensive alternate delivery channel for the customers to avail of a full bouquet of services making it the best successful model globally” CEO, FINO PayTech Limited.
Fino Payments Bank (FPB) is a wholly-owned subsidiary of Fino Paytech. FPB plans to more than double merchant points by FY23 to improve access to banking. FPB is working towards ramping up its network of ‘merchant points’ from the current 4 lakh to 10 lakh by FY23. The aim is to ensure customers don’t need to travel more than 300 metres to access its services, against the average 1 km they travel now.
FPB’s merchant banking points, which are usually local shops equipped with interoperable micro-ATMs, offer services such as cash deposit/withdrawal, opening new bank accounts, domestic money transfer, bill payment, recharge and travel booking.
Rishi Gupta, MD and CEO, observed that though the number of new accounts opened (including under the Pradhan Mantri Jan Dhan Yojana) by banks has jumped over the past few years, the infrastructure (branches, ATMs and point-of-sale terminals) to service these account holders has not kept pace.
On an average, Fino opens 80,000-1,00,000 bank accounts (savings and current) a month. Our focus has always been to increase the access to banking points across the country,” he further said, adding that FPB continues to invest $3-4 million a year to upgrade technology.
Besides operating businesses such as jewellery, mobile and grocery stores, FPB’s merchant points double up as banking outlets. With cash availability being a problem in rural areas, these points can dispense money generated by their own businesses. This way, the cash gets recycled locally. Also, unlike banks, which have regulated business hours, these points don’t have any.
The Company’s main business activities and operations involve:
- To conceive, design, develop, implement, own, set up, run, administer and manage network operations information technology operations, technology data, management information, analysis, development and accounting information, configuration and asset management, back up and recovery network operations, information infrastructure in the rural and urban areas, user training, data bases management, disaster recovery, planning and execution.
- To carry on the business of developing, improving, designing, marketing, selling and licensing software, intelligent hardware and program products of any and all description and to render technical assistance and services including maintenance in connection with the use, purchase, sale, import, export, lease, distribute, license, design, manufacture of any apparatus, appliance, system, component, electronic and electromechanical products and systems and program products.
- To carry on business of customer identification, customer acquisition, customer data collection, customer management, customer servicing and to disseminate, supply, furnish provide, sell, give, send, part with, dispose of, public information, knowledge, data, details and the like relating to the customers, using the systems, apparatus and components, for any person or persons (whether individuals, firms, companies, bodies corporate, Government, State, Sovereign, public body or authority, supreme, local or otherwise or other entities) including providing consultancy services related to the preparation and maintenance of accounting, statistical, scientific, mathematical and other information and reports, data processing, programming, collecting, storing, processing, transmitting information and data of every kind and description, systems analysis, and machine services for solving or aiding commercial, industrial, scientific and research problems as also on all matters and problems relating to their administration, organisation, finance, management, personnel, commencement or expansion of industry and business (including production, purchases, sales, marketing, advertisement, publicity, personnel, export and import) and for all other related business.
- To carry on the business as Broker and/or Corporate Insurance Agent of Insurance companies in all branches of insurance, implement and run systems in the field of insurance policy administration, insurance claims management, insurance agency management, user management, insurance administration, insurance accounting and all other related business.
- To engage in the business of cash management services including cash carry and delivery, cash management, payment processing to include cash collection at branches/ merchant points (appointed agents) or at client locations, and related services to customers/merchants for merchandise, various utilities services and business applications, as may be permitted and subject to such regulatory approvals as may be required, and to carry systems study, analysis, design, development of software systems, hardware and related activities for the implementation of above mentioned activities.
Mumbai-based Fino Payments Bank has recorded a second year of profitability after stating that its profit after tax (PAT) grew by 109% year-on-year (YoY) to INR 42.74 Cr as opposed to INR 20.4 Cr in FY21.
Its EBITDA for FY22 was INR 84.38 Cr – a 62% YoY rise from INR 52.02 Cr in FY21
The bank processed 67 Cr transactions worth INR 1.87 Lakh Cr in FY22 and reportedly opened more than 3.78 Lakh merchant accounts during the same period. Of this, 20.2 Lakhs were current and savings accounts (CASA).
Shares of Fino Payments Bank made its debut on the stock exchanges on 12 November 2021. The stock listed at Rs 544.35 apiece, a 5.65% discount over issue price of Rs 577 per share. The Rs 1200.29 crore initial public offering (IPO) was subscribed 2.03 times.
Outlook:
The company expects to raise between Rs 400 crore and Rs 500 crore which will simultaneously dilute the foreign shareholding in the company to below 49% to comply with the RBI licensing conditions. Private equity investors, banks, insurance, technology, retail and non-banking finance companies are showing interest in picking up stake.
Recently there are news reports that ICICI Bank would be its partner bank for support in deposits, cash management, manpower and technology. Fino PayTech already offers a variety of other services, including recharges for mobiles, utility bill payments, ticket booking, insurance distribution, and assisted online shopping, among others.
The fast-growing remittances on the retail platform (which had doubled in the past five months to about Rs 300 crore every month) augurs well for the fintech company.
Recent Developments-
Buyback – Fino Paytech has offered to Buy-back up to 58,29,408 fully paid-up equity and preference shares of the Company, representing 4.38% of total number of equity and preference shares of the Company, at Rs. 214.43/- per share for an aggregate amount upto Rs. 124.99 crore constituting 21.92% of the total paid up share capital and free reserves of the Company for the financial year ended 31 March 2022.
Fino Payments Bank to initiate reverse merger with holding company Fino Paytech by June, says MD&CEO – 3 March 2022
Fino Payments Bank is keen on initiating the reverse merger with its holding company Fino Paytech Ltd by June when the Reserve Bank of India (RBI) mandated five-year holding period of promoters comes to an end, as per the company’s Managing Director and Chief Executive Officer Rishi Gupta.
Fino Payments Bank was launched in 2017 and will complete five years of business by June 30. As of December 31, Fino Paytech held a 75% equity stake in Fino Payments Bank, while public shareholders held the rest.
Fino Payments Bank to more than double merchant points by FY23 – January 2020
Fino Payments Bank (FPB) is working towards ramping up its network of ‘merchant points’ from the current 4 lakh to 10 lakh by FY23. The aim is to ensure customers don’t need to travel more than 300 metres to access its services, against the average 1 km they travel now.
Fino Paytech invests in CityCash – December 2018
Through the partnership Fino will attempt to digitise public transport payment for consumers taking the bus, auto or cabs in the country.