RNFI Services Limited IPO: Everything You Need to Know About the ₹70.81 Crore Offering
RNFI Services Limited, a leading fintech solutions provider, has launched its Initial Public Offering (IPO) to raise ₹70.81 crore through a fresh issuance of 67.44 lakh shares. The IPO, which opened for subscription on July 22, 2024, and will close on July 24, 2024, has set a price band of ₹98 to ₹105 per equity share. This article provides a complete overview of RNFI Services Limited and its IPO, covering all essential details and insights.
Also Read-IPO Opportunities to Invest in the Year 2024
RNFI Services Limited IPO Details.
| Company | RNFI Services Limited |
| IPO Type | SME IPO |
| Face Value | ₹10 per share |
| IPO Price | ₹98 to ₹105 per share |
| Market Lot | 1,200 shares |
| Minimum Order Quantity | 1 Lot (1,200 shares) |
| IPO Size | ₹70.81 crore |
| Fresh Issue | 67.44 lakh shares |
| Listing At | NSE Emerge |
| IPO Open Date | July 22, 2024 |
| IPO Close Date | July 24, 2024 |
Timeline and Important Dates for RNFI Services Limited IPO.
| Event | Date |
|---|---|
| IPO Open Date | July 22, 2024 |
| IPO Close Date | July 24, 2024 |
| Basis of Allotment | July 25, 2024 |
| Initiation of Refunds | July 26, 2024 |
| Credit of Shares to Demat | July 26, 2024 |
| Listing Date | July 29, 2024 |
Financial Performance Indicators of RNFI Services Limited.
| Key Performance Indicator (KPI) | Values |
|---|---|
| Return on Capital Employed (ROCE) | 29.74% |
| Debt/Equity Ratio | 1.02 |
| Return on Net Worth (RoNW) | 40.92% |
| Price-to-Book Value (P/BV) | 6.05 |
| Profit After Tax (PAT) Margin | 1.06% |
Incorporated in 2015, RNFI Services Limited is a financial technology firm that offers B2B and B2B2C solutions through its online portal and mobile application. The company focuses on providing comprehensive banking, government-to-citizen (G2C), and digital services nationwide.
RNFI Services has now opened its initial public offering (IPO) to raise ₹70.81 crore through a fresh issuance of 67.44 lakh shares. The IPO, which opened for subscription on July 22, 2024, has set a price band of ₹98 to ₹105 per equity share and will conclude on July 24, 2024.
An interested investor can bid for a minimum of one lot of 1,200 equity shares worth approximately ₹1.17 lakh and in multiples thereof. The net proceeds from the fresh issue will be used to meet working capital requirements, capital expenditure, strengthening technology infrastructure, inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.
About RNFI Services Limited.
RNFI Services offers technology-enabled financial solutions in the B2B and B2B2C sectors through an integrated business model via a mobile application and online portal. The company’s core focus lies in providing banking, G2C, and digital services across India.
Its business is segregated into four key segments:
- Full-fledged money changer
- Business correspondent services through RNFI Money Private Ltd
- Non-business correspondent services through RNFI Money Private Ltd
- Insurance broking through Reliassure Insurance Brokers Private Ltd
As of the end of FY24, RNFI Services had processed more than 1.15 crore transactions per month with a reach across 28 states, 5 union territories and over 17,900 pin codes. The company has about 1,405 employees and more than 3.60 lakh network partners.
RNFI Services offers a wide range of services including:
- Domestic money transfer
- Aadhaar-enabled payment system (AEPS)
- Micro ATM services
- Last mile doorstep services for e-KYC
- EMI collections
- Delinquent loan collections
- Sales support
The company has partnered with 11 leading public sector and payment banks to facilitate financial flows and promote financial inclusion.
RNFI Services Limited IPO Objectives.
The company plans to utilize the net proceeds from the fresh issue for the following purposes:
- Boosting working capital
- Purchasing Micro ATMs, laptops, and servers
- Upgrading technology systems
- Making potential acquisitions
- Meeting general corporate expenses
Grey Market Premium (GMP) of RNFI Services Limited IPO.
The current Grey Market Premium (GMP) for RNFI Services IPO is ₹40. This indicates that shares are trading at a premium of ₹40 in the unofficial grey market. If this GMP holds, the expected listing price would be ₹145 (issue price of ₹105 + GMP of ₹40), representing a potential gain of 38.10% over the issue price.
However, investors should not base their investment decisions solely on the GMP, as it is a highly speculative and unofficial market.
Financials of RNFI Services Limited.
RNFI Services’ revenue decreased by 11.81% in the last financial year compared to the previous year. However, the company’s profit increased by 103.82% during the same period.
SWOT Analysis.
Here is a SWOT analysis of RNFI Services Limited:
Strengths.
- Growing demand for financial inclusion services in India
- Potential to expand services and product offerings
- Leverage technology to improve efficiency and scalability
- Make strategic acquisitions to broaden reach
Weaknesses.
- Decreasing revenue (-11.81% in FY24)
- Reliance on a small number of partner banks (11)
- Dependence on physical network of partners (may not scale well)
Opportunities.
- Growing demand for financial inclusion services in India
- Potential to expand services and product offerings
- Leverage technology to improve efficiency and scalability
- Make strategic acquisitions to broaden reach
Threats.
- Competition from other fintech companies and banks
- Regulatory changes in the financial services sector
- Economic slowdown impacting customer demand
How to Apply for RNFI Services IPO.
To apply for the RNFI Services IPO, follow these steps:
- Open a Demat and Trading Account with a broker if you don’t have one.
- Access IPO details for RNFI Services on your broker’s platform.
- Place your bid for the desired number of shares within the IPO’s price range.
- Confirm your information and submit your application.
Frequently Asked Questions (FAQ).
1. What is the price band for RNFI Services IPO?
The price band for RNFI Services IPO is ₹98 to ₹105 per equity share.
2. What is the lot size for RNFI Services IPO?
The minimum lot size for RNFI Services IPO is 1,200 shares, and bids can be placed in multiples thereof.
3. When will RNFI Services IPO open and close for subscription?
RNFI Services IPO opened for subscription on July 22, 2024, and will close on July 24, 2024.
4. How much money does RNFI Services plan to raise through the IPO?
RNFI Services plans to raise ₹70.81 crore through the fresh issuance of 67.44 lakh shares.
5. What are the main objectives of the RNFI Services IPO?
The main objectives of the RNFI Services IPO are to boost working capital, purchase Micro ATMs and other equipment, upgrade technology systems, make potential acquisitions, and meet general corporate expenses.
6. What is the current Grey Market Premium (GMP) for RNFI Services IPO?
As of July 19, 2024, the Grey Market Premium (GMP) for RNFI Services IPO is ₹40.
7. How can I apply for the RNFI Services IPO?
To apply for the RNFI Services IPO, you need to have a Demat and Trading Account. Access the IPO details on your broker’s platform, place your bid for the desired number of shares within the price range, confirm your information, and submit the application.
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C.K. Gupta
Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.
