Fincare Small Finance Bank IPO – Review, Bid Size, Allotment, Subscription, GMP & Price
Last Updated Date: May 09, 2023Set forth the Banking functions from July 2017, Fincare Small Finance Bank is a digital-first small finance bank. The banking company has refiled its Draft Red Herring Prospectus for the IPO approval with certain changes in the sum to be raised.
The company has now filed the DRHP to raise Rs. 625 crores through a Fresh Issue and offering 17,000,000 Equity Shares in an Offer for Sale.
Let’s gain knowledge on this upcoming IPO, including all its essential aspects, in this Fincare Small Finance Bank IPO Review.
| Face Value | Rs 10 |
| Price Band | Rs. [ ] |
| Listing At | BSE, NSE |
| Min. Order Quantity | [ ] shares |
| Listing Date | Not disclosed |
| Offer for Sale | Not Disclosed |
| Fresh Issue | Rs.625 Crore |
| IPO Size | Rs. Crore |
| Tick Size | 1 |
Fincare Small Finance Bank IPO Overview
Bengaluru-based small finance bank is a digital-first banking company driven towards offering banking facilities, especially to the unbanked and underbanked individuals. They offer a wide range of products and services to ensure uninterrupted banking services for their customers.
After reconsidering its financial requirements and circumstances, the company recently refiled its preliminary papers with SEBI. The Fincare, Small Finance Bank IPO, consists of a Fresh Issue and an Offer for Sale, the same as the earlier DRHP.
Fincare Small Finance Bank IPO Important Dates
| Events | Date |
| IPO Opening Date | Not Disclosed |
| IPO Closing Date | Not Disclosed |
| Basis of Allotment Finalization | Not Disclosed |
| Refunds Initiation | Not Disclosed |
| Credit of Shares to Demat Account | Not Disclosed |
| Share Listing Date | Not Disclosed |
The Fincare Small Finance Bank IPO refiling was executed on 6th August. The company has sought SEBI’s approval on the IPO to process the proceedings and list the company’s shares on the stock exchanges.
The Fincare Small Finance Bank IPO Dates will be determined after the draft papers are approved.
Fincare Small Finance Bank IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Not Disclosed |
| Offer for Sale | Not Disclosed |
| Fresh Issue | Rs. 625 Crore |
| IPO Size | Not Disclosed |
Fincare Small Finance Bank IPO Size will include equity shares offered through the fresh issue and offer for sale. The Fincare Small Finance Bank IPO price will be determined through the Book Building Process. Book Building Process is an effective method of determining the share price without bias or unfair proceedings.
The face value of the equity shares is Rs. 10 each. The issue is a mainline issue, and the offered shares are proposed to be listed on BSE and NSE.
Fincare Small Finance Bank IPO Grey Market Premium
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| NA | NA | NA | NA |
| NA | NA | NA | NA |
| NA | NA | NA | NA |
| NA | NA | NA | NA |
| NA | NA | NA | NA |
Along with the stock market, trading of equity shares of a company also takes place in an unofficial market, known as Grey Market. The shares are traded in this market before their listing on the stock exchange by way of IPO.
It will be interesting to see how the market will react to this IPO and where the Fincare Small Finance Bank IPO GMP will go. Investors will be eyeing on the market activities of this trading place before the IPO opening.
Fincare Small Finance Bank IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – | ||||
| 2nd Day – | ||||
| 3rd Day – | ||||
| Shares Offered or Net Issue |
Subscription can also be considered as the show time of an IPO. This is the point when the IPO is open to the public to bid. Investors bid in the Fincare Small Finance Bank IPO Subscription online through Application Supported by Blocked Amount (ASBA) process.
50% of the offer will be available for the Qualified Institutional Buyers (QIB)s, 15% of the offer will be reserved for allocation to the Non-Institutional Buyers, and for the Retail Individual Investors, 35% of the offer will be available for allotment.
Fincare Small Finance Bank IPO Allotment Status
Fincare Small Finance Bank IPO Allotment will be undertaken after the bidding period has been completed and the company has received all the bids from the public. During the allotment step, the issuer company credits the successful bidders’ shares into the Demat Accounts.
The company determines the allotment basis to determine the bidders who will receive the allotment.
Fincare Small Finance Bank IPO Live Performance
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Fincare Small Finance Bank – Company Review
The journey of Fincare Small Finance Bank was started over two and half decades ago in the form of a microfinance institution serving the people who do not have access to large banking companies and other high-level financing entities.
The company was transformed into a small finance bank in July 2017. The company caters to its customers with a wide variety of innovative products and services, which primarily focuses on unbanked and under-banked customers. The area of operations of this company largely included rural and semi-urban areas.
Fincare Small Finance Bank aims at making banking smart and is widely driven by technology. They tend to offer banking facilities with advanced technology and easy access.
Products or Services
Being a banking company, Fincare Small Finance Bank is licensed to accept deposits from customers and grant them loans. The customers can open different accounts with the company, like Savings accounts and Current Accounts. Further, they can avail facilities like Fixed Deposits and recurring deposits to save their money and earn interest on the same over time.
Further, Fincare Small Finance Bank has services like NRI Banking 3-in-1 account, Safe Deposit Locker, and much more.
If you are seeking a loan, you can knock on the doors of Fincare. The company offers Loan Against Property, Affordable Housing loans, Loans Against Gold, Microloans, etc.
Promoters and Holding
The Promoter of Fincare Small Finance Bank is Fincare Business Services Limited.
The management of the company comprises:
- Pramod Kabra, in the position of Part-time Chairman and Non-Executive Director
- Rajeev Yadav, in the position of MD & CEO
- Aarthi Sivanandh, in the position of Independent Director
- Alok Prasad, in the position of Independent Director
- Divya Sehgal, in the position of Nominee Director
- Dhiraj Poddar, in the position of Nominee Director
- Nanda Sameer Dave, in the position of Independent Director
- Narayanan Rajagopalan Nadadur, in the position of Additional Director (Independent)
- Sameer Yogesh Nanavati, in the position of Nominee Director
- Sunil Satyapal Gulati, in the position of Independent Director
- Varun Sabhlok, in the position of Independent Director
- Vinay Baijal, in the position of Independent Director
- Keyur Doshi, in the position of Chief Financial Officer
- Ashish Mishra, in the position of Chief Operating Officer – Retail Banking
- Deepabh Jain, in the position of Chief Operating Officer – Mortgages
- Jatinder Mohan Singh Shah, in the position of Chief Operating Officer – Business Banking
- Mahender Ramchand Chawla, in the position of Chief Operating Officer – Loan against Gold, Sustainability & Quality
- Soham Shukla, in the position of Chief Operating Officer – Rural Banking
- M Sai Suryanarayana, in the position of Chief People Officer
- Nilesh Sangoi, in the position of Chief Information Officer
- Pankaj Gulati, in the position of Chief Marketing Officer and Chief Operating Officer – Corporate Services
- Rakesh Das, in the position of Chief Credit Officer
- Devika Praveen, in the position of Chief Compliance Officer
- Manmohan Singh, in the position of Chief Risk Officer
- Subash V., in the position of Head – Internal Audit and Chief of Internal Vigilance
- Shefaly Kothari, in the position of Company Secretary and Compliance Officer
Is Fincare Small Finance Bank good for Investment?
Banks are the financial institutions that play a major role in building and strengthening an economy. They are one of the strong pillars in the effective management of money and its distribution. They are licensed to receive deposits and grant loans to the public. With time, the participation of these institutions has widened to a magnificent scale. Even the forms of banks have evolved now. With the emergence of micro financing, small finance banks have been inserted into the picture.
Fincare Small Finance Bank is decades old entity engaged in the financial sector and serves as a small finance bank. The entity is technology-driven and strives to turn banking into smart banking.
The company has an expanded network of over 528 outlets across India and 108 ATMs.
Fincare Small Finance Bank Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Assets | 1,09,059.03 | 79,670.73 | 71,171.28 |
| Revenue | 16,476.48 | 13,767.10 | 12,140.92 |
| Expense | 16,387.77 | 12,635.71 | 10,706.43 |
| Profit After Tax | 1,899.54 | 2,102.13 | 1,372.74 |
Fincare Small Finance Bank is a profitable entity, and its financial statements reflect a year-on-year profit from the past few years.
The company’s total income in the years 2020, 2021, and 2022 was – Rs. 12,140.92 million, Rs. 13,767.10 million, and Rs. 16,476.48 million, respectively.
The company’s net profits in 2020, 2021, and 2022 were – Rs. 1,372.74 million, Rs. 2,102.13 million, and Rs. 1,899.54 million, respectively.
The company’s revenue has gradually risen in the last three years, and as for the profits, the graph has shown both ups and downs.
The EPS of Fincare Small Finance Bank in the recent financial year has gone down from the previous year. The EPS in March 2022 was Rs. 0.38, whereas, in March 2021, the value was Rs. 5.55.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Basic & Diluted | 0.38 | 5.55 | 7.03 |
Fincare Small Finance Bank IPO Review
Fincare Small Finance Bank, which was earlier aiming to raise funds through a Fresh Issue of Rs. 330 crores and OFS of about Rs. 1000 crores.
The company will utilize the funds from the fresh issue to augment the bank’s tier one capital base and for other general corporate purposes.
Promoter and some of the Investor Selling Shareholders will pull back their holding partially or fully with the IPO Offer for Sale. The specifics of the name and quantum of the investors, along with their holdings, are given in DRHP.
Fincare Small Finance Bank IPO Details
Here are few more details you need to know before investing in this IPO –
Fincare Small Finance Bank IPO Issue Object
The Fincare Small Finance Bank has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Augmenting its Tier-1 capital base to meet our future capital requirements
- Meeting the expenses in relation to the Offer
Fincare Small Finance Bank IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Customer-centric approach driven by digital banking and automation;
- Strong commitment to financial inclusion with extensive rural franchise and expanding urban presence;
- Multi-channel, low cost distribution network with diversified geographic presence;
- Fast-growing stable deposit base with a growing CASA franchise;
- Stable and experienced professional leadership team;
- Robust risk management policies, leading to healthy asset quality; and
- Strong track record of financial and operational performance
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 0.38 | 0.80 | 50.22 |
| 31-Mar-21 | 5.55 | 11.89 | – |
| Mar-20 | 7.03 | 16.61 | – |
Fincare Small Finance Bank IPO Lead Managers
Here are the list of Lead managers –
- ICICI Securities Limited
- IIFL Securities Limited
- Ambit Private Limited
Fincare Small Finance Bank IPO Registrar to offer
Check out the details of registrar here –
KFin Technologies Limited
Selenium, Tower B, Plot No. – 31 and 32 Financial District
Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: fincare.ipo@kfintech.com
Website: www.kfintech.com
Investor grievance e-mail: einward.ris@kfintech.com
Contact Person: M Murali Krishna
SEBI Registration Number: INR000000221
Fincare Small Finance Bank IPO – Other Details
- Statutory Auditor – S.R. Batliboi and Associates LLP
- Legal Counsel to the Company – NA
- Bankers to the Company – ICICI Bank Limited
Fincare Small Finance Bank IPO – Conclusion
The profitable small finance bank, Fincare Small Finance Bank, is ready to go public and join other listed entities on the exchange. The company has been present for over two decades in the Indian market and, over the years, has created a definite place for itself.
The financial sector of any country works as the roots for the growth and development of the overall economy. New advancements in the segment allow new opportunities for the customers to save and invest their money innovatively.
Fincare is also one of those innovative companies whose operations are based on the latest technologies. Investors can consider investing in this IPO. Do go through the company’s associated risks and growth aspects.
To Subscribe to Fincare Small Finance Bank IPO – Open Demat Account Now!
Fincare Small Finance Bank IPO Review FAQs
Check out the FAQs on Fincare Small Finance Bank IPO –
What is the Issue Size of Fincare Small Finance Bank IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Fincare Small Finance Bank IPO?
The price band for this particular IPO ranges between Rs. X. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the Fincare Small Finance Bank IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.
What is the Syrma Technology IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.
What is the Fincare Small Finance Bank IPO Listing Date?
Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.
Who is the Registrar of Syrma Technology IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Fincare Small Finance Bank IPO?
Here is the promoter of this IPO – FINCARE BUSINESS SERVICES LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Syrma Technology IPO?
They have obtained the GMP of this IPO and it is Rs. X. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Syrma Technology IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Fincare Small Finance Bank Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2022 in Million is 1,899.54, 2021 is 2,102.13, and for 2020 is 1,372.74.
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