RNFI Services Limited, established in 2015, is a financial technology company offering a range of B2B and B2B2C solutions through its online portal and mobile application. The company's services encompass banking, digital transactions, and Government-to-Citizen (G2C) services across India. Their business operations are categorized into four primary segments:
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Business Correspondent Services: Acting as intermediaries for banks to provide financial services in underbanked regions.
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Non-Business Correspondent Services: Offering various financial services beyond traditional banking correspondence.
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Full-Fledged Money Changer Services: Providing currency exchange services to meet diverse customer needs.
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Insurance Broking: Facilitating insurance products to clients, enhancing financial inclusion.
As of July 2024, RNFI Services had established partnerships with eleven financial institutions, including national private and public sector banks, as well as payment banks, to serve as business correspondents.
Financial Performance
The company's financial trajectory over the past three fiscal years showcases significant growth:
Fiscal Year Ending March 31, 2022: Total revenue stood at 190.79 crore, with a profit after tax (PAT) of 5.55 crore.
Fiscal Year Ending March 31, 2023: Revenue increased to 1,069.40 crore, while PAT was 4.89 crore.
Fiscal Year Ending March 31, 2024: The company reported a revenue of 943.05 crore and a PAT of 9.96 crore.
SME IPO Details
In July 2024, RNFI Services Limited launched its SME Initial Public Offering (IPO) with the following specifics:
Issue Size: Up to 70.81 crore, comprising a fresh issue of 67.44 lakh shares.
Price Band: 98 to 105 per share.
Issue Period: Opened on July 22, 2024, and closed on July 24, 2024.
Lot Size: 1,200 shares.
Listing Platform: NSE SME.
The IPO received an overwhelming response, being oversubscribed 221.49 times. The Non-Institutional Investors (NII) category was subscribed 513.31 times, the Qualified Institutional Buyers (QIB) category 140.66 times, and the retail category 142.62 times.
Objectives of the IPO
The funds raised from the IPO are intended for:
Capital Expenditure: Investing in plant and machinery to enhance operational capacity.
Debt Repayment: Reducing existing liabilities to strengthen the balance sheet.
General Corporate Purposes: Addressing miscellaneous corporate needs to support overall growth.
Listing Performance
RNFI Services' shares made a remarkable debut on the NSE SME platform on July 29, 2024, listing at 199.50 per share—a 90% premium over the issue price of 105. This robust performance underscores investor confidence in the company's business model and growth prospects.
Industry Outlook
The Indian fintech industry is poised for substantial growth, with projections indicating an increase from $50 billion in 2021 to $150 billion by 2025. The total addressable market is expected to reach $1.3 trillion by 2025, with assets under management projected at $1 trillion and revenues at $200 billion by 2030. RNFI Services, with its comprehensive suite of financial services, is well-positioned to capitalize on this expanding market.
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Conclusion
RNFI Services Limited's successful IPO and strong market debut reflect its solid foundation in the fintech sector. The company's diverse service offerings, strategic partnerships, and consistent financial growth position it favorably to leverage the burgeoning opportunities within India's fintech landscape.