RNFI Services IPO to open for subscription on July 22; price band set at ₹98-105 apiece

RNFI Services IPO: Subscriptions for the RNFI Services IPO are scheduled to open on Monday, July 22, and close on Wednesday, July 24. The initial public offering of RNFI Services is priced between ₹98 and ₹105 per share, having a face value of ₹10. There are at least 1,200 shares available for bidding, as well as multiples of those shares.

A maximum of 12,72,000 equity shares are available for Qualified Institutional Buyers (QIB); 9,54,000 equity shares are available for Non-Institutional Investors (NII); 22,26,000 equity shares are available for Retail Individual Investors (RII); and 3,84,000 equity shares are available for Market Maker in the RNFI Services IPO.

With a focus on delivering digital, banking, and government-to-citizen (G2C) services throughout all of India, the company is a tech-enabled platform that offers financial technology solutions in the B2B and B2B2C financial technology arena through an integrated business model via our online portal and mobile application. The organisation has divided its operations into four main business segments: (i) business correspondent services; (ii) non-business correspondent services; (iii) full-service money changer; and (iv) insurance broking.

As per the red herring prospectus (RHP), the company's listed peers are BLS E-Services Ltd (with a P/E of 55.30), and Mos Utility Ltd (with a P/E of 37.15).

In FY24, the firm generated ₹93,542.38 lakhs in sales, ₹1,923.88 lakhs in EBITDA, and ₹996.07 lakhs in profit.

RNFI Services IPO details

The RNFI Services IPO, worth ₹70.81 crore, is purely made up of fresh issue of up to 6,744,000 equity shares.

The net proceeds of the IPO will be utilised to support working capital requirements, capital expenditure, expansion of technological infrastructure, inorganic growth through unidentified acquisitions and other strategic initiatives, and for general company reasons.

Choice Capital Advisors Private Ltd is the book running lead manager for the Issue. Skyline Financial Services Private Ltd is the registrar for the Issue.

Ranveer Khyaliya, Chairman & Managing Director of RNFI Services Ltd expressed, “its immense pleasure to share this significant milestone in our journey as we prepare for our IPO. Since our inception, our mission has been to bridge the financial gap in rural India, bringing accessible and innovative financial technology solutions to the underserved. Our dedicated team and extensive network have enabled us to reach over 28 states and 5 union territories, processing more than 115 lakh transactions monthly till the date.

Our IPO marks a new chapter in our journey. It is an opportunity to further our mission of financial inclusion and technological innovation. The funds raised will be used to enhance our service offerings, expand our network, and continue our commitment to empowering rural India. We are excited about the future and the potential to make a greater impact on the financial landscape of India.”

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