Upcoming IPO India1 Payments Aims To Deploy 20,000 ATMs In Next 4-5 Years

Upcoming IPO India1 Payments Ltd, previously known as BTI (Banktech India Pvt Ltd) Payments is aiming to deploy 20,000 ATMs in next 4-5 years. The plan comes through an objective to ensure cash availability to customers in semi-urban and rural area. Currently the company is rolling out 300-400 ATM machine in a month.

India 1 IPO

India1 Payments Limited is the largest non-bank ATM machine operator in India. It is the second-largest ATM machine operator after SBI (State Bank Of India) in India. Incorporated in 2006, The Bengaluru Headquartered company is also known as White Label ATMs (WLAs) as the ATMs which are set up, owned, and operated by non-bank entities are known as WLAs.

MD and CEO K Srinivas quotes ” The hike in interchange fees by RBI including different structural growth drivers, with an expected increase in cash withdrawal transactions, will accelerate White Label ATMs deployments in the country. He also added, “We are mindful that when a customer comes to our ATMs in rural areas after traveling 8-9 km then he should be able to withdraw money”.

With no presence in the northeast region yet, Srinivas said the company may consider deploying ATMs over there next year. He also added, “We are committed to improving financial inclusion through the accessibility of our ATM services in the under-penetrated semi-urban and rural areas of the country”.

India1 Payments Ltd, promoted by the Banktech Group of Australia operates a network of 10,300 WLAs and its ATMs are deployed under the brand name of India1ATMs. The ATMs are installed in semi-urban and rural areas serving around 14 states and union territories.

The company’s customers include people who possess a debit card or credit card of any one of the 100 banks that are a part of the National Financial Switch which is operated by NPCI (National Payments Corporation of India). RBI quotes as of September Data, the total number of ATMs in India is 2.4 lakh, out of which around 28,000 are white-label machines.

The company’s growth rate is over 15% over last year and accounts for more than 50% of incremental ATMs deployed during the same period. The company will focus on states like UP, Bihar, and West Bengal which have less range of ATMs in the near future.

With objectives of repayment and prepayment of debt, funding capital expenditure requirements, setting up ATMs, and general corporate purposes the company got SEBI’s nod for an initial public offering comprising a fresh issue worth ₹150 crores and an offer for sale (OFS) of up to 10,305,180 equity shares by promoters and investors.

JM Financial Limited, Edelweiss Financial Services Limited, IIFL Securities Limited are the Book Running Lead Manager(s) for the issue.

Leave a Comment