Fino Payments Bank has received the go-ahead from the capital markets regulator Sebi to float its initial public offering (IPO) and raise funds. The fintech player, which is eyeing to raise up to Rs 1,300 crore from its stake sale, had filed its draft red herring prospectus (DRHP)in July 2021. The company will issue fresh equity shares worth Rs 300 crore and promoter company Fino Paytech Limited's stake worth up to 1,56,02,999 equity shares of the company. According to this calculation, the price band for the issue is likely to be around Rs 640 per equity share. The company has reserved equity shares worth Rs 3 crore for its eligible employees. Fino Payments Bank has obtained observations from Sebi on October 1, which is mandatory before launching any public issue like IPO, follow-on public offer (FPO), and rights issues. The lender may consider a pre-IPO placement worth Rs 60 crore after the consultation with merchant bankers. If the company opts for pre IPO placement, the fresh issue size will be trimmed. The net proceeds from the issue will be utilized for augmenting its Tier-1 capital base to meet its future capital requirement and general corporate purposes. Fino Payments Bank offers a diverse range of digital financial products and services and has a payments focus. Since 2017, it has grown its operational presence to cover over 94% of Indian districts as of March 2021. The company operates on an asset-light model which is primarily dependent on the fee and commission income, generated from its vast and pan India merchant network. The company became profitable in the final quarter of the fiscal year 2019-20 and has remained in the black in the subsequent quarters since then. In FY20 and FY21, it facilitated more than 318.56 million and 434.96 million transactions, respectively. It recorded the gross transaction values of Rs 94,452.6 crore and Rs 1,32,930.7 crore, respectively during the period under review. Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory Services are appointed as the book running lead managers to the issue, whereas Kfin Technologies has been appointed as the registrar for the issue.