NPCI completes private placement of 4.63% shares, widens its shareholding base

National Payments Corporation of India (NPCI) has announced the completion of private placement of 4.63% of its equity shares worth ₹81.64 crores.

In an attempt to diversify and distribute its shareholding to a larger set of the RBI regulated entities and categories of payment industry participants, NPCI has chosen the broad-basing exercise. It made an offer for the private placement to 131 RBI regulated entities, out of which 19 evinced interest and were allotted shares in NPCI.

With this expansion, NPCI gets on-board some of the leading banks as well as new categories of few banks including non-bank entities authorised by the RBI. After this shareholding expansion, the total shareholder entities for NPCI has reached 67.

NPCI is a not-for-profit organisation initiated by the RBI and the Indian Banks' Association (IBA). In order to achieve greater efficiency in operations and expand the reach of digital payments systems, the company is focused to bring innovations to the retail payments systems using technology.

“We are extremely pleased with the outcome of this exercise and the confidence expressed in NPCI’s continued growth and larger purpose. With this we have also broad based our shareholding to include new categories like Payment Banks, Small Finance Banks and Payment System Operators in addition to existing Public Sector, Private Sector, Foreign, Co Operative & Regional Rural Banks” Rupesh H Acharya, Chief of Finance, NPCI, said.

The number of entities in NPCI and their details and shareholding are found here.

ICICI Securities served as the advisor for the private placement. Khaitan & Co, Mumbai, was also associated as Legal Advisor with NPCI in this transaction.