RNFI Services Limited IPO

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They are a tech-enabled platform offering comprehensive financial technology solutions in the B2B and B2B2C arenas through an integrated business model via their online portal and mobile application. Their focus is on providing banking, digital, and Government to Citizen (G2C) services across India.

Business Segments

Their business is divided into four primary segments:
i. Business Correspondent Services                   ii. Non-Business Correspondent Services
iii. Full-Fledged Money Changer Service         iv. Insurance Broking

Subsidiaries

i. RNFI Money Private Limited: A wholly-owned subsidiary, registered with the RBI as a Full-Fledged Money Changer (FFMC).
ii. Reliassure Insurance Brokers Private Limited: A wholly-owned subsidiary, registered with IRDAI as a direct broker (Life and General).

Business Correspondent Services

As a business correspondent, we provide:
i. Domestic Money Transfer (DMT)                   ii. Aadhaar Enabled Payment System (AePS)
iii. Micro ATM (M-ATM)                                      iv. Kiosk banking services
v. Doorstep services for KYC authentication for prepaid cards and Fastag service

Distribution Network

They have implemented a “phygital” strategy, integrating physical and digital functionalities. As of June 3, 2024, their front-end distribution network includes over 3.60 lakh network partners across India, providing various tech-enabled business correspondent and non-business correspondent services.

Under their services segment, they act as representatives of their banking partners, earning fees and commissions for services rendered to end customers through their distribution network.

Conclusion

Their robust end-to-end network, combining front-end distribution and back-end technology, positions them as a key player in the financial technology landscape in India. By continually innovating and expanding their service offerings, they aim to maintain their growth trajectory and contribute significantly to financial inclusion and digital transformation across the country.

Objects of the RNFI Services Limited IPO:

The net proceeds of the Issue, i.e. gross proceeds of the Issue less the issue expenses to the extent applicable to the Issue ("Net Proceeds") are proposed to be utilised for the following objects: i. Funding the working capital requirements of the Company ii. Funding Capital expenditure requirements for the Purchase of Micro ATMs/laptops/Server iii. Strengthening our technology infrastructure to develop new capabilities iv. Achieving inorganic growth through unidentified acquisitions and other strategic initiatives v. General Corporate Purposes.
DRHP of RNFI Services Limited IPO
RHP of RNFI Services Limited IPO

RNFI Services Limited IPO Details:

Open Date: Jul 22 2024
Close Date: Jul 24 2024
Total Shares: 6,744,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 70.81 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 98 - 105 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 29 2024

Promoters And Management:

Ranveer Khyaliya, the Chairman and Managing Director, has been with the company since October 13, 2015, as a Director and Promoter. He holds a Master's in Computer Applications from Amity University, Rajasthan, and has over eight years of experience in fintech, software development, and finance. Previously, he worked as a web developer from April 2013 to September 2015. He oversees technological advancements and product development. Deepankar Aggarwal, the Executive Director, holds a Bachelor's in Commerce from the University of Delhi and an IFS Level 3 Certificate in Mortgage Advice and Practice. He has been with the company since 2017 and has over 18 years of experience in operations, compliance, and fintech. Previously, he worked as a Manager of Operations from 2005 to 2011 and as Manager and Supervisor of BPO operations from 2012 to 2016. He is responsible for daily operations and business compliance. Kirandeep Singh Anand, the Executive Director, holds a Post Graduate Diploma in Business Management from Guru Nanak Institute of Management. He joined the company as Director on November 1, 2023, and brings over 19 years of experience in banking, sales, and fintech. His previous roles include positions at ICICI Bank, HDFC Bank, Indusind Bank, and Lyra Network Private Limited. Kirandeep focuses on forging new partnerships and introducing innovative products and services to diversify RNFI's revenue streams and promote sustainable growth.

Financials of RNFI Services Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 18,825 106,659 93,542
Other Income 255 280 763
Total Revenue 19,080 106,940 94,305
Direct Costs 12,489 18,294 18,024
Purchases of traded goods 3,402 84,060 69,246
Change in inventories 109 -154 26
Employees Benefit Expenses 1,673 2,799 3,685
Other Expenses 428 946 1,400
EBITDA 980 994 1,924
OPM (%) 5.13% 0.93% 2.04%
Depreciation & Amortisation 149.49 200.22 378.92
EBIT 830 794 1,545
Finance Cost 49 140 243
PBT 778 654 1,302
Tax 223 165 306
PAT 555 489 996
NPM (%) 2.91% 0.46% 1.06%
No.of Shares 249.52 249.52 249.52
EPS 2.22 1.95 3.99

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
RNFI Services Limited 935 10 3.99 26.3 105 262
BLS E-Services Limited 301 34 3.46 67.1 232 2,108
Mos Utility Limited 175 10 4.20 46.8 197 490
* All the data is as per FY24.

Recommendation on RNFI Services Limited IPO:

Review and Recommendation of RNFI Services by team IZ is 5/10. 1. RNFI Services Limited is a tech-enabled platform offering financial technology solutions in both B2B and B2B2C arenas through an integrated business model. Utilizing their online portal and mobile application, they provide banking, digital, and Government to Citizen (G2C) services across India. 2. Core Business Segments Business Correspondent Services:- i. Transactional Services                ii. Kiosk Banking Services             iii. Doorstep KYC Services Non-Business Correspondent Services:- i. Mobile and DTH Recharge                        ii. Bharat Bill Payment System (BBPS) Services iii. PAN Card Services                                   iv. G2C Services v. IRCTC and Flight Booking Services        vi. Bill Payments for Noida Power Company Limited vii. EMI Collection Services                         viii. Delinquent Loan Collection Services Full-Fledged Money Changer Services:- i. Purchase of Foreign Exchange         ii. Sale of Foreign Exchange Insurance Broking:- i. Motor Insurance                               ii. Health Insurance                      iii. Life Insurance 3. Distribution Network Their presence spans over 28 states and 5 Union territories, covering 17,964 pin codes across India. Their network comprises over 3.60 lakh partners, enabling them to provide comprehensive financial services to a broad customer base. 4. Competitive Landscape They operate in a highly competitive industry with numerous players offering similar services, both independently and as integrated solutions. Competition comes from established industry leaders, local unorganized players, and emerging online and offline agencies. 5. The Revenue has Increased from Rs.188 Crores in FY22 to Rs.935 Crores in FY24. 6. The EBITDA has Increased from 10 Crores in FY22 to 19 Crores in FY24. 7. The PAT has Increased from 5 Crores in FY22 to 10 Crores in FY24. 8. As per FY24, CFO/EBITDA is 1.01, and EPS is 3.99, 9. Market Capitalization is 262 Crores and P/E is 26.3x based on FY24.

Lead Manager of RNFI Services Limited IPO:

  1. Choice Capital Advisors Private Limited

Registrar of RNFI Services Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

RNFI Services Limited UG-5, Relipay House, Plot No. 42 DLF Industrial Area Kirti Nagar, West Delhi, New Delhi, -110015 Phone: +91-8448985100 Email: cs@rnfiservices.com Website: https://www.rnfiservices.com/

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