RNFI Services Limited is launching an IPO with a fresh issue of 67,44,000 shares worth INR 70.81 crores. The company aims to support working capital, invest in technology and equipment, pursue growth through acquisitions, and cover general corporate needs.
RNFI Services IPO – Important Dates
| RNFI Services Limited IPO Date | July 22, 2024 to July 24, 2024 |
| RNFI Services Limited IPO Listing Date | July 29, 2024 |
| RNFI Services Limited IPO Price | INR 98-105 per share |
| RNFI Services Limited IPO Lot Size | 1200 shares |
| RNFI Services Limited IPO Total Issue Size | INR 70.81 crores |
| RNFI Services Limited IPO Basis of Allotment | July 25, 2024 |
| RNFI Services Limited IPO Initiation of Refunds | July 26, 2024 |
| RNFI Services Limited IPO Credit of Shares to Demat | July 26, 2024 |
| RNFI Services Limited IPO Issue Type | Book Built Issue IPO |
| RNFI Services Limited IPO Listing At | NSE SME |
RNFI Services Limited IPO – Company Profile
RNFI Services Limited is a tech-enabled platform offering nationwide B2B and B2B2C financial technology solutions. It operates in business and non-business correspondent services, full-fledged money changer services through RNFI Money Pvt. Ltd., and insurance broking via Reliassure Insurance Brokers Pvt. Ltd.
Specializing in non-business correspondent services, the company excels in utilities, travel-related services, EMI and delinquent loan collections, and product sales. Its robust network and advanced technology ensure a competitive edge in payments, remittances, and customer service solutions.
It bridges financial inclusion gaps by offering tech-enabled services nationwide, partnering with 11 financial institutions. It operates a “phygital” strategy, integrating physical and digital channels, serving over 3.60 lakh network partners with diverse business and non-business correspondent services.
RNFI Services Ltd IPO Fundamental Analysis
RNFI Services Limited Technologies’ financial analysis reveals a mixed performance. Revenue increased significantly, equity and liabilities grew and profitability and EPS improved, while RoNW decreased. Total assets and current ratio rose, reflecting business growth and liquidity challenges.
- Revenue Trend: The revenue increased from ₹18,825.26 lakhs in March 2022 to ₹1,06,659.37 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 93,542.38 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹555.03 lakhs in March 2022 to ₹996.07 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹2.94 in March 2022 to ₹5.85 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 49.42% to 40.92%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
RNFI Services IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 18,825.26 | 1,06,659.37 | 93,542.38 |
| Equity (₹ in lakhs) | 1,369.32 | 2,140.67 | 3,200.71 |
| Expenses (₹ in lakhs) | 18,298.96 | 1,06,285.97 | 93,003.06 |
| Profit and Loss After Tax (₹ in lakhs) | 555.03 | 488.71 | 996.07 |
| Diluted EPS only (₹) | 2.94 | 3.03 | 5.85 |
| Return on Net Worth (%) | 49.42 | 31.99 | 40.92 |
| NAV per Equity Share (₹) | 7.47 | 11.47 | 17.35 |
| Total Assets (in lakhs) | 11,661.34 | 12,526.71 | 19,051.38 |
| Total Liabilities (in lakhs) | 10,292.02 | 10,386.04 | 15,850.68 |
| Debt Equity Ratio | 0.85 | 0.90 | 1.02 |
| Current Ratio (in times) | 1.06 | 1.10 | 0.97 |
RNFI Services Limited IPO Peer Comparison
RNFI Services Limited shows substantial revenue but a lower return on net worth. BLS E-Services Limited has a high EPS and return on equity. Mos Utility Limited presents a moderate revenue with balanced profitability and return on equity.
| Company | Revenue from Operations(₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| RNFI Services Limited | 93,542.38 | 10 | – | 5.85 | 40.92 | 17.35 |
| BLS E-Services Limited | 30,147.93 | 10 | 55.30 | 4.44 | 11.51 | 47.45 |
| Mos Utility Limited | 18,677.43 | 10 | 37.15 | 4.17 | 21.37 | 30.10 |
RNFI Services Ltd IPO Objective
The main objective of RNFI Services Limited is to fund working capital and capital expenditure for micro ATMs, laptops, and servers, strengthen technology infrastructure, and achieve inorganic growth through acquisitions and strategic initiatives.
- Funding the company’s working capital requirements: The company intends to utilize INR 25 crores to fund additional working capital requirements due to increased deposits, business advances, and delinquent loan collection services, supporting its growing network and operational needs.
- Funding Capital Expenditure Requirements for the Purchase of Micro ATMs/laptops/Servers: RNFI plans to deploy 60,000 Micro ATMs by FY 2025, allocating INR 7.74 crores. They will invest INR 2.04 crores in 400 notebooks and set up internal servers for enhanced performance and data management.
- Strengthening the technology infrastructure to develop new capabilities: The company plans to use INR 5.30 crores to design, develop, and maintain software modules, web portals, and mobile apps. This investment includes loan lead generation, travel booking, delinquent loan collection, and e-KYC solutions.
- Achieving inorganic growth through unidentified acquisitions and other strategic initiatives: The company plans to use Net Proceeds for strategic investments to enhance product offerings, expand market presence, and diversify revenue streams. Specific targets and agreements have not yet been identified, but they focus on fintech companies across diverse geographies.
- General Corporate Purposes: The company will balance funds towards general corporate purposes, including brand building, strengthening marketing activities, further capital expenditure, ongoing corporate difficulties, and other strategic initiatives.
RNFI Services IPO Risks And Challenges
RNFI Services Limited’s risks include dependence on banking partners, challenges managing a vast network of 3.60 lakh partners, and upgrading technology infrastructure. These factors could impact operations, revenue growth, and financial stability.
- Their revenue heavily depends on banking partners. Changes in regulations, loss of partnerships, or difficulties obtaining authorization from RBI could adversely impact their operations, financial condition, and prospects.
- The success of their business hinges on a vast network of 3.60 lakh partners across India. Any difficulties in expanding, retaining, or managing this network could impact its revenue growth and network value.
- The performance and security of their technology infrastructure are critical. Investments from Net Proceeds will focus on upgrading systems and reducing reliance on external resources, which are essential for maintaining operational efficiency and adapting to technological advancements.
RNFI Services Ltd IPO – Industry & Market Potential
With a contribution of 7.5% to GDP, India’s IT/software sector is a global leader. It is projected to reach USD 245 billion in revenue for FY 2022-23. The industry benefits from strong government support and rising demand.
Financial services are shifting towards predictive and customized solutions with Open Banking and India Stack driving integration across sectors. Investments in digital technologies and data analytics will enhance accessibility and meet evolving customer expectations.
India’s insurance sector is rapidly growing, driven by rising awareness and increasing incomes. Its projected market size is $280 billion by 2025. Government policies foster growth, creating opportunities for U.S. businesses in this expanding market.
RNFI Services Limited IPO – Type of Offer
RNFI Services Limited is launching an IPO with a fresh issue of 67,44,000 shares worth INR 70.81 crores. The company aims to support working capital, invest in technology and equipment, pursue growth through acquisitions, and cover general corporate needs.
RNFI Services IPO Offer Size
The offer size of RNFI Services Limited is 70.81 crores, consisting of a fresh issue of 67,44,000 shares. The company seeks funds to support working capital, invest in technology and equipment, pursue growth through acquisitions, and cover general corporate needs.
RNFI Services Limited IPO Allotment Structure
RNFI Services Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 384,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 384,000 shares, are reserved for marker makers.
How to apply for an RNFI Services Limited IPO?
To apply for the RNFI Services Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the RNFI Services Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the RNFI Services Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check RNFI Services Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the RNFI Services Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the RNFI Services Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the RNFI Services Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the RNFI Services Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
RNFI Services Limited Ltd IPO Offer Registrar
The registrar for the RNFI Services Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153 A, 1st Floor Okhla Industrial Area, Phase-I
New Delhi – 110 020, India
Telephone: +91 11 40450193-97
E-mail: [email protected]
Website: www.skylinerta.com
RNFI Services Limited Limited IPO – FAQs
1. What is RNFI Services Limited’s allotment date?
The allotment date of the RNFI Services Limited IPO is July 25, 2024.
2. What is the price band of the RNFI Services Limited IPO?
The price band of the issue is INR 98-105 per share.
3. What is the size of the RNFI Services Limited IPO?
The offer size of RNFI Services Limited is 70.81 crores, consisting of a fresh issue of 67,44,000 shares. The company seeks funds to support working capital, invest in technology and equipment, pursue growth through acquisitions, and cover general corporate needs.
4. What is the listing date of the RNFI Services Limited IPO?
The listing date of RNFI Services Limited’s IPO is July 29, 2024.
