Tag: IPO

‘We want to have more ‘buy now, pay later’ customers than any card company’

Banking & Finance

[ad_1]

Read More/Less


Founded in 2009 by husband-wife duo Bipin Preet Singh and Upasana Taku, MobiKwik is waiting to get listed this year along with several other fintech giants including Paytm and PolicyBazaar. Ahead of the ₹1,900-crore IPO, MobiKwik’s co-founder, chairperson and COO Upasana Taku gaveBusinessLine a glimpse into what’s ahead for the payments company and its roadmap post the listing.

How do you plan to deploy the funds raised through the IPO?

We are planning to infuse it back into the company. We will be investing in user and merchant acquisition. We will also be investing more in brand marketing, which we were a bit shy about in the past. Given how large both payments and ‘buy now pay later’ (BNPL) opportunities are we will be investing there as well.

Do you plan to enter any other business streams in financial services?

We already have an insurance distribution licence from IRDAI. We have teams, capabilities and products in partnership with insurance companies on our platform. We have an investment advisory licence from Sebi and direct mutual fund investment products, liquid funds, deposits, gold on our platform. So, we are building insurtech and investment tech as smaller business streams, but they are still nascent. We expect them to grow in 2-3 years.

MobiKwik: Employee stock options to mint several millionaires post IPO

From a larger perspective, 70 per cent of the revenue growth today comes from consumer payments, 20 per cent from the BNPL business, and 10 per cent from the cross-sell business. After 2-3 years, BNPL and payments will bring 40 per cent and 50 per cent revenue, respectively, because the margins in consumer payments is 1.8 per cent while it is about 4.5 per cent for every cycle in the BNPL business. That’s why we expect the revenue share to grow faster in BNPL.

How big is the BNPL opportunity in India?

In India, especially, given that we have only 35 million credit card customers and 250-300 million digitally paying users, this gap is already big. In the next five years, we’ll have 700 million digitally paying users and still only 40-50 million credit card users. BNPL is a very large opportunity. Industry reports say it will be a $50-60-billion opportunity; I feel it will be a $100-billion opportunity in the next two years. We are focused on using our structural advantages to build the ‘buy now, pay later’ category.

Other sectors and traditional banks are also trying to sell digital financial services, especially BNPL. How will MobiKwik strategise differently?

It’s a big market and there will be many people trying to enter. There are some big contenders. Firstly banks and NBFCs, but I don’t see any major competition from them. Most of their distribution is via branches and direct sales agents. It’s completely physical in nature and their operating cost is very high, so they can’t do ₹3,000-5,000 credit products because they can’t make money, given the higher costs.

Digital payments to recover by year end: MobiKwik CEO

It’s not the same for MobiKwik; we are a payments platform with millions of users, and how they are spending the money is in our records. Also, as a wallet and a licensed entity, we have to do KYC [know-your-customer verification] too. We are well poised to leverage this trend of BNPL. Being fully digital we can make money even on a 500-rupee note, apart from having a robust user base.

What about the new-age fintechs?

Other younger and smaller fintech start-ups, much like us, have learned to use AI [artificial intelligence] and ML [machine learning] to track alternative and abstract data points but they have significant challenges when it comes to getting scale. We have 108 million registered users. They don’t have KYC-ed users while we have 45 million KYC-ed users. That’s going to take time and billions of dollars for them to reach. We also have 3.5 million merchants. We have a card through which users can pay anywhere, we have 75,000 e-commerce platforms and apps.

Currently, we have 23 million users for our ‘buy now, pay later’ product. Our end goal is to have a bigger active BNPL user base than any credit card company in India. The top ones have 12-13 million customers as of now. Though our pre-approved user base is already large, we want to convert that to active users quickly.

When do you see the company breaking even?

All our businesses are contribution-margin profitable over the last two years. In the coming few years, too, we plan to continue investing; in the short term the losses will go up, but on a fixed cost the contribution margin will still be profitable. Overall, EBITDA-level profitability is still a few years away.

It was alleged in March that MobiKwik data was breached. Why didn’t the company disclose this on its own before it became known through some ethical hacker?

Firstly, our public statement is out there on our social media profiles where we have denied any breach in the system and even appointed a forensic auditor, and they too didn’t find any breach.

In terms of long-term user security and platform strength and privacy, we have beefed up our teams and quarterly audit processes for all our technology infrastructure. I want to assure you that we have quarterly, semi-annual and annual audits because we are an RBI-regulated entity. We also have licences from IRDAI and Sebi, and have to regularly send reports. After becoming a listed company, of course, the scrutiny bar goes up and we are preparing for that.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Fino Payments Bank gets SEBI nod to float IPO

Banking & Finance

[ad_1]

Read More/Less


Fino Payments Bank has received market regulator SEBI’s nod for launching a ₹1,300 crore Initial Public Offering (IPO).

SEBI has issued its observation letter for the proposed IPO. The issuance of observation letter on October 1 implies SEBI go ahead for the IPO.

Fino Payments Bank IPO is likely to see fresh issue of equity shares worth ₹300 crore and an Offer for Sale of 15,602,999 equity shares by promoter Fino Paytech Limited (FPL). The payments bank may consider a pre-IPO placement aggregating upto ₹60 crore.

It maybe recalled that Fino Payments Bank had in July this year filed its preliminary IPO papers with SEBI.

Fino Payments Bank is a wholly owned subsidiary of FPL, which is backed by marquee investors including Blackstone Group, ICICI Group, Bharat Petroleum and World Bank arm International Finance Corporation (IFC). .

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Know how banks, financials performed this week, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The indices were volatile this week, in line with its global peers, while the broader market indices continued to outperform. The BSE Sensex breached its 60,000-mark, while the Nifty extended its winning run to five weeks in a row on Wednesday, posting the longest weekly gaining streak since 20 December 2020.

However, overall, the indices were muted this week, with experts suggesting indices may see further correction on concerns over global economic recovery and US inflation.

Stock specific moves, cues from Asian markets, US debt ceiling crisis and uptick in bond yield, strong vaccination numbers were key driving factors this week.

Monday Closing bell: Benchmark indices end flat with positive bias, Nifty Bank up nearly 1%

The BSE Sensex pared 334 points from the day’s high to end 29 points higher at 60,078, while the NSE Nifty50 closed at 17,855. During the day, the Sensex logged a fresh record high of 60,412.

The broader market indices underperformed the benchmark Sensex, as the BSE Midcap closed flat and BSE Smallcap down 0.13%.

The Nifty PSU Bank ended flat with positive bias gaining 0.48%, the Nifty Bank ended 0.90% higher at 38,171, and the Nifty Financial Services ended 0.41% higher at 18,706. SBI and HDFC Bank were among top gainers, while Bajaj Finserv was the top laggard, losing more than 2%.

Tuesday Closing bell: Indices bleed, financials highly underperform

After crashing nearly 1,000 points, Sensex recovered from its day’s low to finally close at 59,668, down 0.68%. The Nifty, meanwhile, tumbled 0.60% to end at 17,749.

The broader market also declined, in tandem with the benchmarks. The BSE Midcap index lost 0.71% and the BSE Smallcap 0.62%.

After a volatile session, Nifty PSU Bank gained 1.24% closing at 2,398. Bank Nifty ended in the red, losing 0.59% to end at 37,945, while Nifty Financial Services ended 0.92% lower at 18,534. Kotak Mahindra Bank was among the top gainers, while Bajaj Finance, Bajaj Finserv, ICICI Bank and Induslnd Bank were top laggards.

Weekly Market wrap up: Know how banks, financials performed this week

Wednesday Closing bell : Indices volatile for second day; PSU Banks gain over 2.5%, financials fall

Indices remained volatile for the second day in a row on Wednesday, ending with losses. S&P BSE Sensex recovered from intraday lows and closed 0.43% lower at 59,4113. NSE Nifty 50 turned positive during the day but failed to hold gains and closed 0.21% lower at 17,711.

Midcap and Smallcap indices outperformed benchmark indices, closing with gains.

Nifty PSU Banks finished the day with 2.72% gains, while Nifty Bank slipped 0.53% ending at 37,743. Nifty Financial Services closed 0.88% lower at 18,371. HDFC was among the worst-performing Sensex constituents, falling 2.15%, followed by Axis Bank, Kotak Mahindra Bank and HDFC Bank.

Thursday Closing bell: Indices witness 3-day losing streak, both down 0.5%

Domestic headline indices ended with losses for the third consecutive session, with the Sensex witnessing a tug of war between gains and losses for most of the day to end 0.48% lower at 59,126. The Nifty50 dropped 0.53% to close at 17,618.

Nifty PSU Bank Index maintained its winning streak, closing with 0.80% gains. Nifty Bank, however, fell below the 37,500-mark, down 0.84% to close at 37,425, while Nifty Financial Services closed 0.37% lower at 18,303.

Bajaj Finserv was the top Sensex gainer, jumping 2.19%, followed by Bajaj Finance. Axis Bank, SBI and Kotak Mahindra Bank were among the top drags.

Friday Closing Bell: Sensex, Nifty witness losses for fourth day, both down 0.5%

Indices settled in the red for the fourth straight day on Friday, with Sensex closing 0.6% lower at 58,766, and the Nifty50 falling 0.5% to close at 17,532.

Nifty PSU Bank index continued its winning streak for the fourth consecutive session, closing 1% higher. Nifty Bank, however, fell more than half a percent to close at 37,225, while Nifty Financial Services closed 0.91% lower at 18,137.

Bajaj Finserv fell more than 3%, and Bajaj Finance, ICICI Bank and Induslnd Bank were among top laggards. Muthoot Finance gained over 5%, and Au Small Finance Bank, Bandhan Bank, PNB were among top gainers.

Key Industry takeaways

Icra revises up FY22 GDP growth forecast to 9%

Ratings agency Icra on Monday revised up its 2021-22 real GDP growth estimate for India to 9 percent from the earlier 8.5 percent. A ramp-up in COVID-19 vaccination, healthy advance estimates of kharif (summer) crop and faster government spending were the factors which led to the revision, the agency said in a statement. Icra on Monday said it expects the second half of the fiscal year to have brighter prospects.

Aditya Birla Sun Life AMC IPO fully subscribed on Day 2

Weekly Market wrap up: Know how banks, financials performed this week

The initial public offer of Aditya Birla Sun Life AMC Limited was fully subscribed on the second day on Thursday. The Rs 2,768.25crore initial share sale received bids for 2,99,46,460 shares against 2,77,99,200 shares on offer, translating into 1.08 times subscription, according to an update on the NSE.

The qualified institutional buyers (QIBs) category was subscribed 6 per cent, non-institutional investors 40 per cent and retail individual investors (RIIs) two times. The initial public offer is of 3,88,80,000 equity shares.

RBI extends MSF facility for banks until March next year

Weekly Market wrap up: Know how banks, financials performed this week

The Reserve Bank of India (RBI) on September 28 said it has extended the marginal standing facility (MSF) relaxation for banks until March 31. Earlier, this facility was given till September 30.

Under MSF facility, banks are allowed to avail of funds by dipping into the Statutory Liquidity Ratio (SLR) by up to an additional one percent of net demand and time liabilities (NDTL), i.e., cumulatively up to 3 percent of NDTL.

“With a view to providing comfort to banks on their liquidity requirements as also to enable them to continue to meet LCR requirements, it has been decided to continue with the MSF relaxation for a further period of six months, i.e., up to March 31, 2021,” the RBI said.

US Fed’s tapering inclination may impact India’s FPI inflows, says CARE Ratings

Weekly Market wrap up: Know how banks, financials performed this week

The US Federal Reserve’s indication of tapering asset purchases is likely to impact the flow of funds into Indian markets, but may not be immediate, CARE Ratings said in a report.

The tapering is likely to affect India’s foreign portfolio inflows. Earlier when the Fed had announced tapering in 2013, FPI inflows to India had shrunk in the 2015-18 period.

RBI lifts PCA curbs on Indian Overseas Bank

Weekly Market wrap up: Know how banks, financials performed this week

The Reserve Bank of India on 29, September lifted Prompt Corrective Action restrictions from the Indian Overseas Bank, the central bank said in a release.

The decision came after the bank reported its earnings for the year ended March 31, 2021, and the RBI observed that IOB was not in breach of the PCA parameters. IOB has also provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and Leverage ratio on an ongoing basis



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

Wellness Forever looks to raise ₹1,600 crore through IPO

Banking & Finance

[ad_1]

Read More/Less


Retail pharmacy Wellness Forever Medicare Limited is the latest in a string of healthcare companies looking to tap the capital market, in an effort to raise about ₹1,600 crore to fuel growth, according to market-insiders.

The Adar Poonawalla-backed company has filed a draft red herring prospectus (DRHP) with market regulator SEBI to raise funds through an initial public offering (IPO). This makes it the second pharmacy chain to file for an IPO after Hyderabad’s MedPlus which did the same in August, industry representatives point out.

Also see: Veeda Clinical Research to raise ₹831 cr via IPO; files draft papers with SEBI

The Mumbai-based Wellness Forever was founded by Ashraf Biran, Gulshan Bakhtiani and Mohan Chavan in 2008 and is largely active in the western region of the country.

Fresh issue worth ₹400 crore

The proposed IPO involves a fresh issue of equity shares aggregating to ₹400 crore and an offer for sale of up to 1.60 crore equity shares. As a part of the OFS, up to 7.20 lakh shares each are on offer by Ashraf Mohammed Biran and Gulshan Haresh Bhahtiani, up to 1.20 lakh shares by Mohan Ganpat Chavan, and up to 144.85 lakh shares by other existing shareholders.

The company proposes to utilise the funds raised to support new outlets (₹70.20 crore), repayment and prepayment of certain borrowings (₹100 crore) and funding of working capital requirements (₹121.90 crore), besides other corporate purposes.

Rising revenue

The pharmacy chain’s revenue for the financial year ended March 31, 2021, grew to ₹924.02 crore from ₹863.25 crore in the previous fiscal year. And as of June 30, 2021, the network serves a registered customer base of 6.7 million customers.

Also see: Paras Defence makes a stellar debut, lists at 171 per cent premium

Its pharmacy stores, mostly run round the clock, grew from 144 in March 2019 to 236 stores across 23 cities in Maharashtra, Goa and Karnataka employing more than 4,600 people.

The merchandise on offer at the stores include 91,500 pharmaceutical and wellness products, and each of its stores features an average of approximately 13,000 products per store, including fast-moving consumer goods, health goods, nutraceuticals and medical equipment, among other products, alongside over-the-counter and prescription medicines.

IIFL Securities Limited, Ambit Private Limited, DAM Capital Advisors Limited, and HDFC Bank Limited are book running lead managers to the issue.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Aditya Birla AMC raises Rs 789 crore from anchor investors, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


New Delhi: Aditya Birla Sun Life AMC on Tuesday said it has collected Rs 789 crore from anchor investors ahead of its initial share sale that opens for public subscription on Wednesday. It was decided to allot 1,10,80,800 shares to anchor investors at Rs 712 apiece, valuing the aggregate transaction at Rs 788.95 crore, according to a circular uploaded on the BSE website.

ICICI Prudential Mutual Fund (MF), SBI MF, SBI Life Insurance Co Ltd, Axis MF, UTI MF BNP Paribas Arbitrage, Max Life Insurance Company and HSBC Global Investment Funds are among the anchor investors.

The initial share-sale is entirely an offer for sale, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — will divest their stake in the asset management firm.

The IPO of up to 3.88 crore equity shares comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.

The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.

The issue, with a price band of Rs 695-712 a share, will open for subscription on September 29 and conclude on October 1.

At the upper end of the price band, the initial share sale is expected to fetch Rs 2,768.25 crore.

Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between Aditya Birla Group and Sun Life Financial Inc of Canada.

Asset management firms like Nippon Life India Asset Management, HDFC AMC and UTI AMC are already listed on the stock exchanges.

Aditya Birla Sunlife MF, the fourth largest fund house, had an average asset under management of Rs 2.93 lakh crore as of the June quarter. At present, it manages 118 schemes.

Since its inception in 1994, the fund house has established a geographically diversified pan-India distribution presence covering 284 locations spread over 27 states and six union territories.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter.

Kotak Mahindra Capital Company, BofA Securities, Citigroup Global Markets India, Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and YES Securities (India) Limited are the merchant bankers to the issue.

The asset management company, which had filed preliminary IPO papers with Sebi in April, obtained its clearance in August.

Earlier in June, Sebi had kept the proposed initial share-sale of Aditya Birla Sun Life AMC in “abeyance”. However, the regulator had not disclosed the reason for the same.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Govt may block Chinese investment in LIC IPO as company a ‘strategic asset’, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The government wants to block Chinese investors from buying shares in Life Insurance Corp (LIC), underscoring tensions between the two nations.

State-owned LIC is considered a strategic asset, commanding more than 60% of India’s life insurance market with assets of more than $500 billion.

India has sought to limit Chinese investment in sensitive companies and sectors, banned a raft of Chinese mobile apps and subjected imports of Chinese goods to extra scrutiny.

“With China after the border clashes it cannot be business as usual. The trust deficit has significantly widen(ed),” a government official said, adding that Chinese investment in companies like LIC could pose risks, according to a report.

FDI in IPO

Meanwhile, the government is mulling allowing foreign direct investment (FDI) in LIC, a move that would help overseas investors take part in the company’s proposed mega IPO, sources said.

The proposal is under discussion between the Department of Financial Services and the Department of Investment and Public Asset Management (DIPAM).

According to the current FDI policy, 74 per cent foreign investment is permitted under the automatic route in the insurance sector. However, these rules do not apply to the Life Insurance Corporation of India (LIC), which is administered through a separate LIC Act.

Change of rules

Govt may block Chinese investment in LIC IPO as company a 'strategic asset'

As per Sebi rules, both FPI and FDI are permitted under public offer. However, sources said since LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms regarding foreign investor participation.

The Cabinet had in July approved the initial public offering (IPO) of LIC.

The DIPAM had in January appointed actuarial firm Milliman Advisors LLP India to assess the embedded value of LIC ahead of the IPO, which is touted to be the biggest public issue in Indian corporate history.

The government expects to come out with the LIC IPO by the end of the current fiscal. Up to 10 per cent of the issue size would be reserved for policyholders.

The government has already brought in the required legislative amendments in the LIC Act for the proposed IPO.

Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

India likely to block Chinese investment in LIC’s IPO

Banking & Finance

[ad_1]

Read More/Less


India wants to block Chinese investors from buying shares in Life Insurance Corp (LIC), which is due to go public, four senior government officials and a banker told Reuters, underscoring tensions between the two nations.

State-owned LIC is considered a strategic asset, commanding more than 60 per cent of India’s life insurance market withmore than $500 billion assets. While the government plans to allow foreign investors to participate in what is likely to be the country’s biggest-ever IPO worth a potential $12.2 billion, the sources said it is cautious of Chinese ownership, the sources said.

Read also: Centre’s big push to LIC’s mega IPO

Political tensions

Political tensions between the countries rocketed last year after their soldiers clashed on the disputed Himalayan border, and since then, India has sought to limit Chinese investment insensitive companies and sectors, banned a raft of Chinese mobile apps and subjected imports of Chinese goods to extra scrutiny.

“With China after the border clashes it cannot be business as usual. The trust deficit has significantly widen(ed),” said one of the government officials, adding that Chinese investment in companies like LIC could pose risks.

The sources declined to be identified as discussions on how Chinese investment might be blocked ongoing, and no final decisions have been made.

The finance ministry and LIC did not respond to Reuters emailed requests for comment. China’s foreign ministry and commerce ministry did not immediately respond to requests for comment.

FII investments likely

Aiming to solve budget constraints, the Centre hopes to raise ₹90,000 crore by selling 5 per cent to 10 per cent of LIC this financial year which ends in March. The government has yet to decide whether it will sell one tranche of shares seeking to raise the full amount or choose to seek the funds in two tranches, sources have said.

Under current law, no overseas investors can invest in LIC, but the government is considering allowing foreign institutional investors to buy up to 20 per cent of LIC’s offering.

Options to prevent Chinese investment in LIC include amending the current law on foreign direct investment with a clause related to LIC or creating a new law specific to LIC, two of the government officials said.

They added that the government was conscious of the difficulty in checking on Chinese investments that could come indirectly and would attempt to craft a policy that would protect India’s security but not deter overseas investors.

A third option being explored is barring Chinese investors from becoming cornerstone investors in the IPO, said one government official and the banker, although that would not prevent Chinese investors from buying shares in the secondary market.

Ten investment banks, including Goldman Sachs, Citigroup, and SBI Capital Market have been chosen to handle the offering.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Fino Payments Bank to continue its focus on ‘emerging India’

Banking & Finance

[ad_1]

Read More/Less


IPO-bound Fino Payments Bank is betting big on technological innovation and customers beyond tier-2 towns to fuel its future growth.

“While innovation remains ever-present, technology and customer trust lies at the core of all that we do and forms the foundation for our entire business model. We have and will continue to strengthen our focus within ‘emerging India’, catering to a population that we believe presents a large market opportunity and has typically been overlooked by the majority of the large Indian financial institutions,” Fino Payments Bank has said in its draft red herring prospectus, adding that this section of society is often underserved and typically does not have access to basic banking services.

Training merchants

It has also said it plans to continue investing in technology throughout its business, particularly for on-boarding and training of merchants and will also enhance its ‘phygital’ delivery model.

As of March 31, 2021, Fino Payments Bank had 6.41 lakh merchants, 17,269 active BCs and 25.7 lakh CASA accounts. It also operates 54 branches and 143 customer service points.

The bank had filed draft documents with market regulator SEBI for an initial public offer in July this year. It is looking to raise about ₹1,300 crore, including a fresh issue of ₹300 crore as well as an offer for sale component

Since the beginning of the Covid-19 pandemic, the lender has also seen high levels of transactions through micro-ATM, AePS networks and BC banking operations also received an impetus with increased transactions.

Decline in domestic remittance

In its DRHP, the bank however, noted that there has been a significant decline in domestic remittance transactions as migrant workers relocated from urban areas to hometown. Although its remittance transactions have largely recovered since the initial outbreak and lockdown, it currently remains approximately six per cent below its typical domestic remittance throughput.

Its CMS temporary operations were also impacted due to moratoriums on lending and reduced cash handling requirements. But as the lockdowns eased, this has quickly returned to normal transaction levels.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

IPO-bound Pine Labs raises $100 million from US investment fund, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Mumbai: Pine Labs, which plans to go public in the US next year, said on Thursday that it has raised $100 million from US-based Invesco Developing Markets Fund. The new funding comes just months after it raised $600 million in two tranches from a host of global and domestic investors, which valued the firm at $3.5 billion. Pine Labs’s valuation in its latest round could not be immediately determined.

ET reported earlier on Thursday that the firm had appointed Wall Street bankers Goldman Sachs and Morgan Stanley to steer its US listing and was in talks with investors to raise $100 million. Sources said the firm is eyeing a valuation of $6 billion for its IPO. The Noida-based firm is backed by Sequoia Capital, Temasek Holdings, Actis, PayPal and Mastercard, amongst others.

“Over the last 18 months we have scaled our prepaid issuing stack, online payments, and also the buy now pay later (BNPL) offering. We continue to make progress in the larger Asian markets with our BNPL platform. [We’re] very excited to have a marquee investor like Invesco join us in the journey,” B. Amrish Rau, chief executive officer of Pine Labs, said in a statement.

Pine Labs predominantly specialises in developing software and deployment solutions for point of sale (PoS) devices for storefronts. It has been diversifying its offerings on its newly developed software platform with enterprise solutions such as BNPL integration, invoice management, payment gateway and issuing prepaid cards. The third-highest-valued fintech firm in India behind Paytm and PhonePe, the startup posted a net revenue of Rs 800 crore in FY21, according to company estimates shared with ET in July.

Digital payments continue to see steady growth in India, fuelled by the Covid-19 pandemic. Consumer-focused fintech startups such as Paytm and Mobikwik have also filed their draft prospectuses to go public on domestic exchanges later this year.

Risk investors, both global and domestic, have flocked to the sector in India amid regulatory constraints in investing in China. Late last month, Prosus acquired digital payments processor BillDesk in a $4.7-billion all-cash deal.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Govt appoints 10 merchant bankers for managing LIC IPO, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The government has appointed 10 merchant bankers including Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities India to manage the mega initial public offering of country’s largest insurer LIC. Other selected bankers include SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital Co Ltd, a circular on the divestment department website said.

“Government has finalised the book running lead managers and some other advisors for the IPO of LIC,” DIPAM Secretary Tuhin Kanta Pandey tweeted.

The disinvestment department had invited applications for the appointment of merchant bankers on July 15. Following this, 16 merchant bankers made presentations for managing listing and partial disinvestment of Life Insurance Corporation (LIC).

The Department of Investment and Public Asset Management (DIPAM) is also in the process of appointing a legal adviser for the stake sale and the last date for putting bids is September 16.

Actuarial firm Milliman Advisors LLP India has already been appointed to assess the embedded value of LIC ahead of the IPO, which is likely in the January-March quarter of 2022.

The government is also mulling allowing foreign investors to pick up stakes in the country’s largest insurer LIC. As per Sebi (Securities and Exchange Board of India) rules, foreign portfolio investors (FPI) are permitted to buy shares in a public offer.

However, since the LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms regarding foreign investor participation.

The Cabinet Committee on Economic Affairs had last month cleared the initial public offering proposal of Life Insurance Corp of India.

The ministerial panel known as the Alternative Mechanism on strategic disinvestment will now decide on the quantum of stake to be divested by the government.

“The potential size of the IPO is expected to be far larger than any precedent in Indian markets,” the department had said.

The listing of LIC will be crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March).

So far this financial year, Rs 8,368 crore has been mopped up through minority stake sales in PSU and the sale of SUUTI (Specified Undertaking of the Unit Trust of India) stake in Axis Bank.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,
1 2 3 4 5 … 7