Fincare Small Finance Bank IPO was a proposed Mainboard public issue of Fincare Small Finance Bank Limited. The proposed IPO comprised a fresh issue of equity shares and an Offer for Sale by the promoter selling shareholder. The Bank had proposed to list its equity shares on the BSE and NSE.
The Bank had filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India. The May 2023 DRHP proposed a fresh issue of equity shares aggregating up to ₹625 crore and an Offer for Sale of up to 1.70 crore equity shares by the promoter selling shareholder. The Bank also proposed a pre-IPO placement of up to ₹125 crore, subject to the terms disclosed in the offer document.
Fincare Small Finance Bank was a digital-first small finance bank focused on unbanked and under-banked customers, particularly customers in rural and semi-urban areas. The Bank used technology across its banking operations and provided financial products and services designed around financial inclusion.
The Bank had its origins in the microfinance business and subsequently became a small finance bank after receiving a licence from the Reserve Bank of India in 2017. It operated through a large branch and banking outlet network and offered products including microfinance loans, retail loans, housing loans, gold loans, business loans, deposits and other banking services.
The proposed IPO was intended primarily to augment the Bank’s Tier-I capital base and support its future capital requirements. However, the proposed IPO was not completed. Fincare Small Finance Bank was amalgamated with AU Small Finance Bank, with the amalgamation becoming effective from April 1, 2024.
Table of Contents
IPO Details
| IPO Details | Information |
|---|---|
| IPO Name | Fincare Small Finance Bank IPO |
| Company Name | Fincare Small Finance Bank Limited |
| IPO Type | Book Built Issue |
| IPO Category | Mainboard IPO |
| Face Value | ₹10 Per Equity Share |
| Price Band | |
| Issue Size | Up to ₹625 Crore Fresh Issue + Up to 1.70 Crore OFS Shares |
| Fresh Issue | Up to ₹625 Crore |
| Offer for Sale | Up to 1,70,00,000 Equity Shares |
| IPO Open Date | |
| IPO Close Date | |
| Anchor Investor Bidding | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date | |
| Listing Exchange | BSE & NSE |
| Lot Size | |
| Registrar | KFin Technologies Limited |
| Book Running Lead Managers | Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited, SBI Capital Markets Limited and Ambit Private Limited |
Fincare Small Finance Bank IPO Dates
| IPO Event | Date |
|---|---|
| Anchor Investor Bidding | |
| IPO Opening Date | |
| IPO Closing Date | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date |
The proposed IPO did not proceed to a completed public offering. Therefore, no final IPO opening, closing, allotment or listing dates were announced for a completed issue.
Fincare Small Finance Bank IPO Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | Not More Than 50% of the Net Offer |
| Non-Institutional Investors (NII) | Not Less Than 15% of the Net Offer |
| Retail Individual Investors (RII) | Not Less Than 35% of the Net Offer |
| Employee Reservation |
The proposed offer structure provided for allocation between QIB, NII and retail investors in accordance with the applicable regulations. An employee reservation portion was also contemplated in the offer documents.
Fincare Small Finance Bank IPO Lot Size
| Application | Shares | Amount |
|---|---|---|
| Retail Minimum | ||
| Retail Maximum | ||
| S-HNI Minimum |
The final price band and lot size were not announced for a completed IPO. Therefore, the minimum application amount cannot be calculated reliably.
About Fincare Small Finance Bank Limited
Fincare Small Finance Bank Limited was originally incorporated as Banas Finlease Private Limited in Gujarat in 1995. The Bank subsequently underwent changes in ownership and name and was known as Disha Microfin Limited before becoming Fincare Small Finance Bank Limited.
The Bank received in-principle approval from the Reserve Bank of India in 2015 to convert into a small finance bank. It was subsequently granted a small finance bank licence by the RBI in May 2017 and commenced operations as a small finance bank from July 21, 2017. It was later included in the Second Schedule to the Reserve Bank of India Act.
Fincare followed a digital-first banking model focused on financially underserved customers, especially in rural and semi-urban locations. Its business was built around financial inclusion and providing affordable financial products to individuals, micro enterprises and other customers.
The Bank operated a diversified lending and banking franchise. Its products included microfinance loans, micro-enterprise loans, housing and retail loans, gold loans, business loans and other financial products. It also mobilised deposits through savings accounts, current accounts, fixed deposits and recurring deposits.
The Bank had a large operating network. As of December 31, 2022, Fincare Small Finance Bank had one of the largest banking outlet networks among small finance banks, with more than 1,200 outlets according to industry data.
Business Operations
Fincare Small Finance Bank operated as a full-service small finance bank with a strong focus on financial inclusion.
- Microfinance Loans – The Bank provided group and individual lending products to customers in underserved communities.
- Micro-Enterprise Loans – Fincare provided credit facilities to small businesses and micro enterprises.
- Housing Loans – The Bank offered housing-related credit products to eligible customers.
- Gold Loans – Gold-backed financing formed part of its secured lending portfolio.
- Business Loans – The Bank provided loans to small businesses and self-employed customers.
- Retail Loans – Fincare expanded its retail lending portfolio through various secured and unsecured products.
- Deposit Products – The Bank mobilised deposits through savings, current, fixed and recurring deposit products.
- Digital Banking – Technology was integrated into customer acquisition, servicing and banking operations.
- Financial Inclusion – The Bank focused on customers who were underserved or underbanked by traditional financial institutions.
- Rural and Semi-Urban Banking – A significant part of its operating strategy focused on rural and semi-urban markets.
Industry Overview
Small finance banks were established in India with the objective of promoting financial inclusion and providing banking services to underserved sections of the population. These banks provide deposits, credit and other financial services to individuals and businesses that may have limited access to traditional banking channels.
The small finance banking sector has expanded through branch networks, digital banking channels and diversified lending products. Microfinance and small-business lending remain important components of the sector, while many small finance banks have gradually expanded into secured retail lending and deposit mobilisation.
Technology has become an important component of small finance banking. Digital customer onboarding, automated credit processes, mobile banking and data-driven underwriting can improve operating efficiency and customer access.
However, the sector is also exposed to credit risk, asset quality fluctuations, geographic concentration, interest-rate movements, regulatory requirements and competition from banks, NBFCs and fintech companies.
Fincare operated in this environment with a focus on rural and semi-urban customers and a broad distribution network. Its strategy of combining microfinance with diversified retail and secured lending was intended to reduce dependence on a single lending product and support long-term growth.
Business Strategy
Fincare Small Finance Bank focused on expanding financial inclusion through a combination of physical banking infrastructure and digital technology.
A key component of its strategy was to serve customers in rural and semi-urban areas where access to formal banking services could be relatively limited. The Bank used its branch and banking outlet network to build customer relationships while also increasing digital channels.
The Bank also aimed to diversify its loan portfolio. While microfinance remained an important part of the business, Fincare expanded into housing, gold loans, micro-enterprise lending, business loans and other retail products.
Another important focus was deposit mobilisation. As a small finance bank, building a stable deposit franchise was important for reducing dependence on external funding and supporting future credit growth.
The proposed IPO was intended to strengthen the Bank’s Tier-I capital base. A stronger capital position would have supported future balance-sheet growth, regulatory capital requirements and expansion of its banking operations.
Fincare Small Finance Bank IPO Financial Information
A bank’s financial performance should be evaluated through income growth, profitability, asset quality, capital adequacy, return ratios and balance-sheet strength. Unlike manufacturing companies, banking businesses generate revenue primarily through interest income, fees and other financial services.
Fincare’s FY2023 annual report showed substantial improvement in profitability compared with FY2022. Interest earned increased to ₹1,744.12 crore from ₹1,448.57 crore, while other income increased to ₹226.68 crore from ₹196.17 crore. Profit after tax increased sharply to ₹103.64 crore from ₹8.87 crore.
Fincare Small Finance Bank Financial Summary
| Particulars | FY2021 | FY2022 | FY2023 |
|---|---|---|---|
| Interest Earned | ₹1,251.03 Crore | ₹1,448.57 Crore | ₹1,744.12 Crore |
| Other Income | ₹125.68 Crore | ₹196.17 Crore | ₹226.68 Crore |
| Total Income | ₹1,376.71 Crore | ₹1,644.74 Crore | ₹1,970.80 Crore |
| Interest Expended | ₹550.05 Crore | ₹569.78 Crore | ₹653.68 Crore |
| Operating Expenses | ₹646.80 Crore | ₹874.05 Crore | |
| Provision and Contingencies | ₹419.29 Crore | ₹339.43 Crore | |
| Profit Before Tax | ₹146.42 Crore | ₹5.75 Crore | ₹129.97 Crore |
| Profit After Tax (PAT) | ₹113.14 Crore | ₹8.87 Crore | ₹103.64 Crore |
| Basic EPS | ₹5.55 | ₹0.38 | ₹4.69 |
| Diluted EPS | ₹0.38 | ₹4.68 |
The Bank’s total income increased from approximately ₹1,376.71 crore in FY2021 to ₹1,970.80 crore in FY2023. Interest income remained the principal contributor to total income, reflecting the Bank’s lending-focused business model.
FY2022 profitability was affected by a substantial increase in provisions and contingencies. Profit after tax declined to ₹8.87 crore during FY2022. The Bank recovered strongly in FY2023, with PAT increasing to ₹103.64 crore as provisions moderated and operating income increased.
The FY2023 annual report also reported basic EPS of ₹4.69 and diluted EPS of ₹4.68.
Fincare Small Finance Bank IPO Key Performance Indicators (KPIs)
Key Performance Indicators help investors assess the Bank’s profitability, capital efficiency, asset quality and balance-sheet strength. Banking KPIs should be considered together because a high return ratio alone does not provide a complete picture of a bank’s financial health.
| KPI | FY2023 | FY2022 | FY2021 |
|---|---|---|---|
| Return on Net Worth (RONW) | 0.80% | 0.08% | |
| Basic EPS | ₹4.69 | ₹0.38 | ₹5.55 |
| Diluted EPS | ₹4.68 | ₹0.38 | |
| Net Asset Value | |||
| Capital Adequacy Ratio | |||
| Gross NPA | |||
| Net NPA |
The Bank’s profitability ratios improved significantly in FY2023 following the weak profitability recorded in FY2022. The improvement reflected stronger income generation and lower provisions compared with the previous year.
KPIs & Valuation
Fincare Small Finance Bank reported diluted EPS of ₹4.68 for FY2023. Since the proposed IPO did not proceed to a final price discovery process, the final IPO valuation and P/E multiples cannot be calculated.
| KPI & Valuation | Value |
|---|---|
| Pre-IPO EPS | ₹4.68 |
| Post-IPO EPS | |
| Pre-IPO P/E | |
| Post-IPO P/E | |
| NAV Per Share | |
| Return on Net Worth | 0.80% |
The valuation of a bank should be assessed using earnings, book value, return on equity, asset quality, capital adequacy and growth prospects. Since no final IPO price was established, a meaningful post-IPO P/E or price-to-book valuation cannot be provided.
Objects of the Fincare Small Finance Bank IPO
The principal objective of the proposed fresh issue was to augment the Bank’s Tier-I capital base to meet its future capital requirements.
- Augmentation of the Bank’s Tier-I capital base.
- Support for future capital requirements and business growth.
- General corporate and issue-related purposes, subject to the final offer terms.
The proposed fresh issue was originally structured to raise funds for strengthening the Bank’s regulatory capital position. The exact amount to be allocated to Tier-I capital was dependent on the final offer price and final issue structure.
The Offer for Sale was proposed to be undertaken by the promoter selling shareholder. Proceeds from the OFS would have accrued to the selling shareholder rather than the Bank.
Fincare Small Finance Bank IPO Listing Performance
The proposed IPO did not reach the listing stage. Therefore, there is no official IPO issue price, listing price or listing gain to report.
| Particular | Value |
|---|---|
| Listing Exchange | BSE & NSE |
| Listing Date | |
| Issue Price | |
| Listing Price | |
| Listing Gain | |
| Listing Gain (%) |
Fincare Small Finance Bank was subsequently amalgamated with AU Small Finance Bank, and therefore the proposed standalone IPO did not result in a separate listed Fincare Small Finance Bank security.
Fincare Small Finance Bank IPO Subscription Status
The proposed Fincare Small Finance Bank IPO did not proceed to a completed public bidding process. Therefore, there are no final QIB, NII, retail or total subscription figures for the proposed issue.
Fincare Small Finance Bank IPO Subscription
| Investor Category | Subscription |
|---|---|
| Qualified Institutional Buyers (QIB) | |
| Non-Institutional Investors (NII) | |
| Retail Individual Investors (RII) | |
| Employee Category | |
| Total Subscription |
No final subscription data is available because the proposed IPO did not proceed to a completed public issue.
Fincare Small Finance Bank IPO Review
Fincare Small Finance Bank was positioned as a digital-first small finance bank focused on financial inclusion, with a particular emphasis on unbanked and under-banked customers in rural and semi-urban markets. The Bank had built its operations from a microfinance background and expanded into a broader banking platform.
One of its key strengths was its extensive distribution network. The Bank had more than 1,200 banking outlets by late 2022 according to industry data, providing a significant physical presence in the markets it served. This network supported customer acquisition, lending, deposits and other banking services.
The Bank also diversified its lending portfolio beyond microfinance. Housing loans, gold loans, business loans, micro-enterprise loans and other retail products helped expand its addressable customer base. This diversification was strategically important because it reduced the Bank’s dependence on a single lending segment.
Financially, FY2023 showed a strong recovery from the weak profitability of FY2022. Total income reached ₹1,970.80 crore and PAT increased to ₹103.64 crore. However, the sharp variation in profitability across years also demonstrates the sensitivity of banking earnings to provisions, asset quality and credit costs.
The proposed IPO was intended to strengthen the Bank’s Tier-I capital base and provide additional support for future regulatory and business requirements. Capital augmentation is particularly important for a growing bank because it supports balance-sheet expansion while maintaining regulatory capital ratios.
However, the proposed IPO did not ultimately proceed. Fincare Small Finance Bank was amalgamated with AU Small Finance Bank effective April 1, 2024. Consequently, the standalone IPO opportunity ceased to exist and the proposed issue did not result in an independent stock-market listing for Fincare Small Finance Bank.
Fincare Small Finance Bank IPO Strengths
- Strong focus on financial inclusion with a presence in rural and semi-urban markets.
- Large banking outlet network supporting customer acquisition and servicing.
- Diversified lending portfolio covering microfinance, housing, gold, business and retail loans.
- Digital-first banking model supported by technology-driven operations.
- Strong recovery in FY2023 profitability after a weak FY2022.
- Proposed capital augmentation designed to strengthen the Tier-I capital base.
Fincare Small Finance Bank IPO Risk Factors
- Credit and asset-quality risk can significantly affect banking profitability.
- Microfinance exposure can increase sensitivity to borrower income, economic conditions and local disruptions.
- High provisioning requirements can materially reduce profits during periods of asset-quality stress.
- Regulatory requirements can affect capital allocation, lending and operating strategies.
- Competition from banks, NBFCs and fintech companies can affect customer acquisition and pricing.
- The proposed IPO was not completed, and the Bank was subsequently amalgamated with AU Small Finance Bank.
Fincare Small Finance Bank IPO Promoters
Fincare Small Finance Bank was promoted by Fincare Business Services Limited. The promoter group supported the Bank’s development from its microfinance roots into a small finance banking institution.
Fincare Business Services and its associated investors provided capital, strategic support and operational direction as the Bank expanded its financial inclusion franchise.
Fincare Small Finance Bank IPO Promoters Details
| Promoter | Designation |
|---|---|
| Fincare Business Services Limited | Promoter |
Fincare Small Finance Bank IPO Management Team
The Bank was managed by a professional leadership team with experience across banking, microfinance, finance, risk management and financial inclusion.
Rajeev Yadav served as Managing Director and Chief Executive Officer of Fincare Small Finance Bank and was involved in the Bank’s transition and development as a small finance bank.
The management team was responsible for business growth, financial performance, risk management, technology adoption, regulatory compliance and expansion of the Bank’s customer franchise.
| Name | Designation |
|---|---|
| Rajeev Yadav | Managing Director & Chief Executive Officer |
| Keyur Doshi | Chief Financial Officer |
| Shefaly Kothari | Company Secretary |
The FY2022-23 annual report identifies Rajeev Yadav as Managing Director and CEO, Keyur Doshi as Chief Financial Officer and Shefaly Kothari as Company Secretary.
Fincare Small Finance Bank IPO Registrar Details
The registrar was responsible for handling the proposed IPO application process, basis of allotment, refunds and investor-related services.
| Particular | Details |
|---|---|
| Registrar Name | KFin Technologies Limited |
| Website | https://www.kfintech.com |
| IPO Allotment Status | https://ipostatus.kfintech.com/ |
| Email ID | |
| Contact Number |
KFin Technologies was identified as the registrar to the proposed Fincare Small Finance Bank IPO in the offer documents and IPO market information.
Fincare Small Finance Bank IPO Lead Manager Details
The Book Running Lead Managers were responsible for managing the proposed IPO process, coordinating regulatory requirements and assisting with the public offering.
| Particular | Details |
|---|---|
| Lead Managers | Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited, SBI Capital Markets Limited and Ambit Private Limited |
The May 2023 DRHP and contemporary IPO disclosures identified these institutions as the proposed book running lead managers.
Fincare Small Finance Bank Limited Contact Details
| Particular | Details |
|---|---|
| Company Name | Fincare Small Finance Bank Limited |
| Registered Office | 301-306, 3rd Floor, Abhijeet-V, Opp. Mayor’s Bungalow, Law Garden Road, Mithakhali, Ahmedabad – 380006, Gujarat |
| Website | https://fincarebank.com |
| Email ID | |
| Contact Number | +91 79 4001 1000 |
The registered office details are disclosed in the Bank’s offer documentation.
How to Check Fincare Small Finance Bank IPO Allotment Status
The proposed Fincare Small Finance Bank IPO did not proceed to a completed public issue. Therefore, investors cannot check a final IPO allotment for this proposed issue.
Through KFin Technologies Limited
- Visit the official KFin Technologies website.
- Select the IPO allotment section.
- Search for Fincare Small Finance Bank IPO.
- Enter the required application details.
- Since the IPO was not completed, no final allotment result is available.
Through BSE
- Visit the official BSE IPO section.
- Search for Fincare Small Finance Bank IPO.
- Enter the required application details.
- No final IPO allotment result is available because the proposed issue did not proceed to listing.
Fincare Small Finance Bank IPO Conclusion
Fincare Small Finance Bank was a proposed Mainboard IPO of a digital-first small finance bank focused on financial inclusion and customers in rural and semi-urban areas. The Bank had developed a sizeable operating network and diversified its lending portfolio beyond its microfinance origins.
The Bank’s business model combined physical banking outlets with technology-enabled operations. Its product portfolio included microfinance, micro-enterprise, housing, gold, business and retail loans, together with a range of deposit products.
Financial performance improved significantly in FY2023. Total income increased to ₹1,970.80 crore and profit after tax reached ₹103.64 crore, compared with only ₹8.87 crore of PAT in FY2022. However, banking profitability remained sensitive to provisions, credit costs and asset-quality conditions.
The proposed IPO was designed primarily to strengthen the Bank’s Tier-I capital base and support future capital requirements. A stronger capital position would have supported further lending and balance-sheet expansion.
However, the proposed IPO was not completed. Fincare Small Finance Bank was subsequently amalgamated with AU Small Finance Bank, with the scheme becoming effective on April 1, 2024. Therefore, there was no standalone Fincare Small Finance Bank IPO listing, subscription result or listing performance.
From an IPO-history perspective, Fincare Small Finance Bank remains an example of a proposed banking IPO that was ultimately superseded by a strategic amalgamation. Investors researching the proposed IPO should therefore distinguish between the historical DRHP information and the Bank’s subsequent corporate status.
Fincare Small Finance Bank IPO FAQs
What is Fincare Small Finance Bank IPO?
Fincare Small Finance Bank IPO was the proposed Mainboard public issue of Fincare Small Finance Bank Limited, a digital-first small finance bank focused on financial inclusion and rural and semi-urban customers.
What was the proposed issue size of Fincare Small Finance Bank IPO?
The May 2023 DRHP proposed a fresh issue aggregating up to ₹625 crore and an Offer for Sale of up to 1.70 crore equity shares. A pre-IPO placement of up to ₹125 crore was also proposed, subject to the offer terms.
What was the price band of Fincare Small Finance Bank IPO?
No final IPO price band was announced because the proposed IPO did not proceed to a completed public issue.
When was Fincare Small Finance Bank IPO opening?
No final IPO opening date was announced.
When was Fincare Small Finance Bank IPO closing?
No final IPO closing date was announced.
On which stock exchanges was Fincare Small Finance Bank proposed to be listed?
The proposed IPO contemplated listing the Bank’s equity shares on BSE and NSE.
Who was the registrar for Fincare Small Finance Bank IPO?
KFin Technologies Limited was identified as the registrar to the proposed issue.
What was the face value of Fincare Small Finance Bank IPO shares?
The face value of each equity share was ₹10.
What did Fincare Small Finance Bank do?
Fincare Small Finance Bank operated as a digital-first small finance bank focused on financial inclusion. It provided microfinance, micro-enterprise, housing, gold, business and retail loans along with deposit and other banking products.
What were the objects of the Fincare Small Finance Bank IPO?
The primary objective of the proposed fresh issue was to augment the Bank’s Tier-I capital base to meet its future capital requirements.
Did Fincare Small Finance Bank IPO get listed?
No. The proposed IPO did not proceed to a completed listing. Fincare Small Finance Bank was subsequently amalgamated with AU Small Finance Bank, effective April 1, 2024.
