Introduction
The much-anticipated RNFI Services IPO opens for subscription today, July 22, 2024, and investors are keenly watching this opportunity to invest in a promising fintech company. With plans to raise ₹70.81 crore through the issuance of 67.44 lakh shares. RNFI Services is set to make a significant impact on the market. This article delves into the details of the IPO, including the timeline, price band, allotment, company background, and financial performance.
IPO Timeline and Price Band
The RNFI Services IPO will be open for subscription from July 22 to July 24, 2024. The company has set a price band of ₹98 to ₹105 per equity share, providing a range for investors to place their bids. The financial technology solutions provider aims to raise ₹70.81 crore through this fresh issuance of shares.
Equity Share Allocation
The allocation of equity shares in the RNFI Services IPO is divide among various categories of investors:
- Qualified Institutional Buyers (QIBs): Up to 12.72 lakh shares
- QIB Anchor Portion: Up to 19.08 lakh equity shares
- Non-Institutional Investors (NIIs): Up to 9.54 lakh shares
- Retail Individual Investors (RIIs): Up to 22.26 lakh shares
- Market Maker: Up to 3.84 lakh shares
An interested investor can bid for a minimum of one lot or 1,200 equity shares, amounting to ₹1.17 lakh, and in multiples thereafter.
Objective of the IPO
The net proceeds from the fresh issue will be utilize for various strategic and operational purposes. These include:
- Working Capital Requirements: A significant portion of the funds will be allocate to meet the company’s working capital needs, ensuring smooth operations and business continuity.
- Capital Expenditure: Investments will be made in purchasing micro ATMs, laptops, and servers to enhance the company’s technological infrastructure.
- Inorganic Growth: Funds will also be direct towards acquisitions and other strategic initiatives to drive inorganic growth.
- General Corporate Purposes: A portion of the proceeds will be use for general corporate purposes, enabling the company to strengthen its overall financial position.
RNFI Services IPO Timeline
- Bidding Period: July 22 to July 24, 2024
- Allotment Finalization: July 25, 2024
- Refund Initiation: July 26, 2024
- Demat Transfer: July 26, 2024
- Listing Date: July 29, 2024
Company Background
Established in 2015, RNFI Services is a technology-enabled financial technology solutions provider. The company operates in the business-to-business (B2B) and business-to-business-to-consumer (B2B2C) sectors through an integrated business model via a mobile application and an online portal. RNFI Services’ core focus lies in providing comprehensive banking, government-to-citizen (G2C), and digital services nationwide.
The company’s business is segmented into four key areas:
- Full-Fledged Money Changer
- Business Correspondent Services through RNFI Money Private Ltd.
- Non-Business Correspondent Services through RNFI Money Private Ltd.
- Insurance Broking through Reliassure Insurance Brokers Private Ltd.
Grey Market Premium (GMP)
The RNFI Services IPO has garnered significant interest in the grey market. With shares commanding a strong premium on the first day of its opening. According to various websites tracking grey market activities. The RNFI Services IPO GMP is around ₹50. Translating to a premium of over 47% over the upper end of the public issue’s price band of ₹98-105.
Financial Performance
RNFI Services has shown a mix of highs and lows in its financial performance over the last three fiscal years:
- FY22: Total income of ₹190.80 crore and net profit of ₹5.55 crore.
- FY23: Total income of ₹1,069.40 crore and net profit of ₹4.89 crore.
- FY24: Total income of ₹930.03 crore and net profit of ₹9.96 crore.
Despite fluctuations in income and profit margins, the company has maintained an average Earnings Per Share (EPS) of ₹4.42 and an average Return on Net Worth (RoNW) of 39.36%. The IPO is priced at a Price-to-Book Value (P/BV) of 6.05 based on its NAV of ₹17.35 as of March 31, 2024, and at a P/BV of 2.56 based on its post-IPO NAV of ₹41.04 per share at the upper cap.
Use of Proceeds
The proceeds from the RNFI Services IPO will be allocated as follows:
- Working Capital Requirements: ₹25 crore
- Capital Expenditure on Micro ATMs, Laptops, and Servers: ₹10.81 crore
- Strengthening Technology Infrastructure: ₹5.30 crore
- General Corporate Purposes: Remaining proceeds
RNFI Services’ Mission and Vision
RNFI Services is committee to bridging the financial gap in rural India by providing accessible and innovative financial technology solutions. The company’s mission is to empower underserved populations by connecting them to formal financial channels through a user-friendly web and mobile application.
With a robust distribution network and a strong focus on financial inclusion. RNFI Services aims to contribute to the development of a “DIGITAL BHARAT.” The company has made significant strides in the fintech sector. Processing over 115 lakh monthly transactions and expanding its presence to over 28 states and 5 union territories. Moreover, covering 17,964 pin codes.
Conclusion
The RNFI Services IPO presents a promising investment opportunity for those looking to capitalize on the evolving fintech landscape in India. With its strong foothold in the industry, focus on financial inclusion, and innovative technology solutions. RNFI Services is well-position for continue growth and expansion.
Investors interested in the IPO should carefully consider the company’s financial performance, objectives, and market potential before making an investment decision. The subscription window for the RNFI Services IPO closes on July 24, 2024, and the shares are expect to list on the NSE SME on July 29, 2024.
FAQs
- What is the RNFI Services IPO price band? The price band for the RNFI Services IPO is set at ₹98 to ₹105 per equity share.
- When does the RNFI Services IPO subscription window open and close? The subscription window opens on July 22, 2024, and closes on July 24, 2024.
- What is the minimum investment required for the RNFI Services IPO? Investors can bid for a minimum of one lot or 1,200 equity shares, amounting to ₹1.17 lakh.
- What will the proceeds from the RNFI Services IPO be use for? The proceeds will be use for working capital requirements, capital expenditure, strengthening technology infrastructure, inorganic growth, and general corporate purposes.
- When will the RNFI Services IPO shares be list on the stock exchange? The shares are expect to be list on the NSE SME on July 29, 2024.
