RNFI Services IPO

Closed

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22nd – 24th Jul 2024
29 Jul 2024
₹98 – ₹105
Lot size 1200 — ₹126000
71cr

Schedule of RNFI Services

Issue open date 22 Jul 2024
Issue close date 24 Jul 2024
UPI mandate deadline 24 Jul 2024 (5 PM)
Allotment finalization 25 Jul 2024
Refund initiation 26 Jul 2024
Share credit 26 Jul 2024
Listing date 29 Jul 2024
Mandate end date 09 Aug 2024
Lock-in end date for anchor investors (50%) 24 Aug 2024
Lock-in end date for anchor investors (remaining) 23 Oct 2024

Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.

About RNFI Services

RNFI Services Limited’s IPO is set to launch on July 22, 2024, with subscriptions closing on July 24, 2024. Established in 2015, the fintech firm provides B2B (Business-to-Business) and B2B2C (Business-to-Business-to-Consumer) financial technology solutions throughout India via an online portal and mobile application. It specialises in banking, digital, and government-to-citizen (G2C) services. They have processed over 115 lakh monthly transactions as of March 31, 2024. RNFI Services Limited’s network includes over 360,000 partners across 28 states and 5 Union territories, covering 17,964 pin codes as of June 3, 2024.

The company divides its operations into four major segments:

  • Business correspondent services – Including transactional services such as Domestic Money Transfer (DMT), Aadhaar Enabled Payment System (AePS), Micro ATM, kiosk banking, and doorstep services for e-KYC verification for prepaid cards and Fastag services.
  • Non-Business Correspondent Services – Covering utilities & travel-related services such as mobile and DTH recharge, Bharat Bill Payments System (BBPS), PAN card services, G2C services, bill payments, IRCTC bookings, and more.
  • Full-Fledged Money Changer Service – Offered through RNFI Money Private Limited, an RBI-registered full-fledged money changer (FFMC).
  • Insurance Broking – Conducted through Reliassure Insurance Brokers Private Limited, which provides motor, health, and life insurance services and is registered as a direct broker (Life and General) with IRDAI.

Financials of RNFI Services


Issue size

Funds raised in the IPO Amount
Overall ₹70.81 crores
Fresh issue ₹70.81 crores
Offer for sale

Utilisation of proceeds

Purpose INR crores (%)
Working capital 25.00 (35.30%)
Purchase of Micro ATMs/Laptops/Server 10.81 (15.26%)
Technology Infrastructure 5.30 (7.48%)
General corporate purposes 29.7 (41.9%)

*All figures except EPS are in ₹ crores

Strengths

  • Holistic Business Model: The company offers a comprehensive range of services through a tech-enabled platform, integrating B2B and B2B2C models. This diversified approach reduces dependence on any single product or service, mitigating risks and enhancing resilience against market volatility.
  • Advanced Digital Platform: Significant investment in technology has resulted in an advanced digital platform, ensuring efficient and secure transactions. This focus on technology supports operational efficiency and customer satisfaction.
  • Extensive Network and Reach: The company has a wide-reaching network with over 3.60 lakh partners across 17,964 pin codes in India. This extensive reach supports a strong market presence and accessibility.

Risks

  • Regulatory Risks: The financial services industry is highly regulated, and changes in regulations or non-compliance can lead to legal penalties and operational restrictions.
  • Operational Risks: The company faces risks related to system failures, data breaches, and cyber-attacks, which could disrupt operations and damage reputation.
  • Dependency on Key Clients: A significant portion of revenue comes from a few key clients. Loss of these clients could adversely affect financial performance.
  • Borrowings: The company has significant borrowings secured by its assets. Adverse changes in interest rates or failure to meet debt obligations could impact financial stability.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 26, 2024, on the registrar’s website and the NSE website.