Fino Payments Bank IPO - Subscription Day 2

5paisa Research Team 5paisa Research Team 2nd November 2021 - 05:48 pm

The Rs.1,200 crore IPO of Fino Payments Bank, consisting of a fresh issue of Rs.300 crore and an offer for sale (OFS) of Rs.900 crore, continued to see a tepid response on Day-2. As per the combined bid details put out by the BSE at the end of Day-2, Fino Payments Bank IPO was subscribed 0.87X overall, with bulk of the demand coming purely from the retail segment which saw a robust oversubscription. The issue closes on 02nd November.

As of close of 01st November, out of the 114.65 lakh shares on offer in the IPO, Fino Payments Bank saw bids for 99.91 lakh shares. This implies an overall subscription of 0.87X. The granular break-up of subscriptions were tilted in favour of retail investors with HNIs and QIBs hardly participating on the first two days of the IPO. QIB bids and NII bids typically come in only on the last day of the IPO.

Fino Payments Bank IPO Subscription Day-2

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.00 Times
Non Institutional Investors (NII)	0.10 Times
Retail Individuals	4.65 Times
Employees	0.56 Times
Overall	0.87 times

QIB Portion

The QIB portion of the IPO saw negligible subscription at the end of Day-2 also. On 28 October, Fino Payments Bank did an anchor placement of 93,37,641 lakh shares at the upper end of the price band of Rs.577 to 29 anchor investors raising Rs.539 crore.

The list of QIB investors including a number of marquee names like Fidelity, HSBC Global, Pinebridge, Birla Mutual, Tata MF, SBI Life, Invesco, BNP Paribas and Societe Generale; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 62.25 lakh shares of which it has got negligible bids for shares on Day-2 of the IPO. QIB bids typically get bunched on the last day, but anchor response has been robust and that is good news.

HNI / NII Portion

The HNI portion got subscribed 0.10X (getting applications for 3.10 lakh shares against the quota of 31.13 lakh shares). This is a relatively tepid response on Day-2 and this segment normally sees response on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better.

Retail Individuals

The retail portion was subscribed a robust 4.65X at the end of Day-2, showing strong retail appetite. Retail allocation for this IPO is 35% of the offer size. For retail investors; out of the 20.75 lakh shares on offer, valid bids were received for 96.51 lakh shares, which included bids for 77.35 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.560 – Rs577) and will close for subscription on 02nd November 2021.

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