RNFI IPO: 47% Grey Market Premium – ₹1.26 Lakh Minimum Investment!

RNFI Services, a fintech firm specializing in banking solutions, has launched its initial public offering (IPO) today, July 22, 2024. The IPO has attracted significant investor interest due to its strong grey market premium (GMP), which currently stands at around 47%. Investors looking to participate in this offering must make a minimum investment of ₹1.26 lakh. The IPO is set to close on July 24, 2024, and the company’s shares are scheduled for listing on the NSE SME exchange by July 29, 2024.

RNFI IPO Gains Strong Grey Market Premium

The IPO of RNFI Services opened for public subscription today and will remain open for three days. On the first day of bidding, the company’s unlisted shares demonstrated strong demand in the grey market, with a reported GMP of approximately ₹50. This translates to a premium of over 47% compared to the IPO’s price band, which is set between ₹98 and ₹105 per share. This strong grey market sentiment suggests a potentially positive debut for the stock on the NSE SME exchange.

Investment Details and Subscription Timeline

The RNFI Services IPO subscription window will remain open until Wednesday, July 24, 2024. The IPO consists of a fresh issue of 6,744,000 shares, collectively valued at ₹70.8 crore. Investors are required to apply for a minimum lot of 1,200 shares, with additional bids in multiples of that amount. Given the price band, the minimum investment required from retail investors is ₹1,26,000.

RNFI IPO Listing on NSE SME

Once the subscription period concludes, the basis of allotment for RNFI Services shares will be finalized by Thursday, July 25, 2024. Investors who receive an allotment can expect their shares to be credited to their Demat accounts by Friday, July 26, 2024. The company’s listing on the NSE SME exchange is tentatively scheduled for Monday, July 29, 2024.

Utilization of IPO Proceeds

Skyline Financial Services Private Ltd has been appointed as the registrar for the IPO, while Choice Capital Advisors Pvt Ltd is the lead manager overseeing the offering. Prior to the IPO opening, RNFI Services successfully secured ₹20.03 crore from anchor investors on July 19, 2024.

The proceeds from the IPO will primarily be used to support the company’s working capital requirements and fund necessary capital expenditures. This includes purchasing essential infrastructure such as micro ATMs, laptops, and servers. Additionally, a portion of the funds will be allocated toward enhancing the company’s technology infrastructure, which will help develop new financial capabilities.

RNFI Services’ Growth Strategy

Beyond working capital and technology upgrades, RNFI Services also plans to utilize the IPO proceeds for inorganic growth through potential acquisitions and other strategic initiatives. The company aims to strengthen its market position by expanding its digital financial services, improving operational efficiency, and exploring new business opportunities.

About RNFI Services

Founded in 2015, RNFI Services Limited is a prominent financial technology company in India. The company provides a range of digital banking and financial services, operating across four main categories: money changer services, non-business correspondent services, and insurance broking. With its extensive reach and digital-first approach, RNFI Services continues to play a crucial role in advancing financial inclusion across India.

The company’s IPO is expected to provide a significant boost to its growth trajectory by enabling it to scale operations and expand its technological capabilities. Given the strong response in the grey market and positive investor sentiment, RNFI Services is poised for a successful listing on the NSE SME exchange.