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Markets regulator Sebi has given its nod for the initial public offering of Fino Payments Bank, which is looking to raise around Rs 1,300 crore.
Besides, Kerala-based Popular Vehicles and Services Ltd has received approval from the watchdog for an Initial Public Offering (IPO).
Sebi has issued observation letters for the proposed IPOs, according to the latest update by the regulator.
An observation letter is mandatory for an initial share sale. In Sebi parlance, the issuance of observations implies its go-ahead for the IPO.
The observation letter for Fino Payments Bank IPO was issued on October 1, while that for the share sale of Popular Vehicles and Services was issued on September 29.
Fino Payments Bank's IPO includes a fresh issue of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 15,602,999 equity shares by promoter Fino Paytech. The IPO is estimated to be worth Rs 1,300 crore.
Proceeds from the fresh issue would be used towards augmenting the bank's tier-1 capital base to meet its future capital requirements. The bank may consider a pre-IPO placement aggregating up to Rs 60 crore.
Fino Payments Bank or FPBL is a scheduled commercial bank serving the emerging Indian market with its digital-based financial services.
The IPO of Popular Vehicles and Services, which is into the automotive dealership, comprises fresh issuance of equity shares worth Rs 150 crore and an OFS of 4,266,666 equity shares by Banyantree Growth Capital II, LLC.
The fresh issue proceeds will be used for payment of certain borrowings, including working capital loans, availed by the company and its subsidiaries and for general corporate purposes.
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