The SME IPO of RNFI Services opened for subscription today and will close on July 24. The company aims to raise about ₹70.81 crore through this IPO and plans to list the shares on the NSE SME platform. Here are 10 important things investors should know before subscribing:
IPO Size: The IPO consists entirely of fresh equity issue of 67.44 lakh shares, aiming to raise ₹70.81 crore.
Price Band: Shares are priced between ₹98 and ₹105 each, with investors able to bid for 1 lot of 1200 shares.
GMP: In the unlisted market, RNFI Services’ shares have a Grey Market Premium (GMP) of ₹55, suggesting a potential listing gain of around 52% if current trends continue.
About the Company
RNFI Services provides advanced financial technology solutions in the B2B and B2B2C sectors through an online portal and mobile application. They focus on offering banking, digital, and government-to-citizen (G2C) services across India.
Industry Overview
The Indian fintech industry is expected to grow from $50 billion in 2021 to $150 billion by 2025. By 2025, the total addressable market could reach $1.3 trillion, with assets under management and revenue projected at $1 trillion and $200 billion respectively by 2030.
Financial Performance: For the year ending March 2024, RNFI Services reported total revenues of ₹935 crore and a net profit of ₹9.96 crore.
Use of Funds: The proceeds from the IPO will be used for working capital, capital expenditure, enhancing tech infrastructure, pursuing inorganic growth, and general corporate purposes.
Lead Managers and Registrar: Choice Capital is the lead manager for the IPO, and Skyline Financial Services is the registrar.
Issue Structure: 50% of the offer is reserved for Qualified Institutional Buyers (QIB), 35% for retail investors, and 15% for non-institutional investors.
Important Dates: The IPO opened on July 22 and will close on July 24. The final allotment is expected on July 25, with the company’s shares likely to be listed on July 29.
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