Oil marketing firm BPCL has decided to pick up 21 per cent stake in Fino Paytech — an entity which had received a licence to start a payments bank — for Rs.251 crore.
All-cash dealThe transaction, which is an all-cash one, is expected to be completed by December 31, 2016, BPCL informed the stock exchanges.
These two companies have entered into a strategic business and investment partnership by which a customer of BPCL would be able to transact through FINO’s payment solutions.
“BPCL is in the process of rolling out various customer service initiatives in its core retail fuels business using the emerging technology solutions.
This investment provides an excellent base for supporting and strengthening these initiatives,” the oil marketing firm said.
Some of the other shareholders of Fino Paytech are private equity form Blackstone and ICICI Bank. “The extensive reach of BPCL distribution allows FINO Payments Bank to substantially improve its reach, especially in rural India,” it said in a statement.
“BPCL will be able to offer a variety of payments bank products to its customers and partners,” Rishi Gupta, CEO& MD, FINO PayTech said. In the last two months, three applicants for payments banks dropped their plans after being given the licence.
