Ann: Trading Halt, page-37

Findi Limited (ASX: FND), an Australian fintech company focused on digital payments and ATM services in India, has launched a $45 million capital raising to fund capital expenditures and restructure debt ahead of the planned initial public offering (IPO) of its Indian subsidiary, Transaction Solutions International (India) Pvt Ltd (TSI India), targeted for 2026 on the Bombay Stock Exchange (BSE).

Capital Raising Structure and Allocation

• Structure:
  • $40 million via a share placement (20.3% of Findi’s shares on issue).
  • $5 million through a share purchase plan.
  • Priced at $4 per share, a 12.3% discount to the last closing price and 21.4% below the 30-day volume-weighted average price.
  • Managed by brokers Morgans Corporate, MST Financial Services, and Ord Minnett.
• Use of Funds:
  • Capital Expenditure: ~$22.8 million, combined with debt financing, to deploy 2,293 additional ATMs under a new State Bank of India (SBI) agreement. This builds on an October 2023 contract for 4,219 ATMs, increasing Findi’s SBI-managed total to over 6,500 ATMs.
  • Debt Restructuring: ~$17.2 million to settle a "termination coupon" owed to Piramal Alternatives, linked to a $37.6 million investment in TSI India in late 2023 via compulsory convertible debentures (CCDs). This covers accrued interest and an 18% annual internal rate of return promised to Piramal.

Strategic Benefits Ahead of the IPO

• Financial Strengthening: Restructuring Piramal’s convertible notes improves Findi’s balance sheet, enhancing its appeal to IPO investors by reducing debt obligations and clarifying equity structure. The CCDs, converting to ~16.7% of TSI India’s equity at IPO, previously valued TSI India at a pre-IPO market cap of AU$153 million (post-money AU$190.6 million).
• Operational Growth: The ATM deployment expands Findi’s network, which already includes over 11,000 brown-label ATMs and 4,600+ white-label ATMs (post-Tata Communications acquisition in February 2025). This boosts transaction volumes (approaching 1 billion annually) and revenue potential in India’s underserved regions.
• Valuation Boost: The Piramal restructuring at a $500 million valuation is projected to add $7 million to Findi’s after-tax profit, enhancing TSI India’s valuation. A successful shift to a digital payments focus (targeting 30% of revenue from FindiPay by IPO) could lift multiples beyond the 10x EBITDA typical for ATM businesses.
• Market Confidence: High-profile contracts with SBI, alongside recent deals with Central Bank of India and acquisitions like BankIT (January 2025) and Tata’s Indicash, signal operational reliability and growth ambition, potentially driving investor interest.

Summary

Findi’s $45 million raise strategically positions it for TSI India’s IPO by funding ATM network expansion and resolving costly debt terms with Piramal Alternatives. This enhances financial stability, operational scale, and valuation prospects, leveraging India’s growing demand for banking and digital payment services (350 million unbanked or underbanked individuals). Execution of these initiatives could solidify Findi’s trajectory toward a $500 million IPO valuation, offering significant upside for shareholders.

Hi Kathy50,

Above are some of my views and research into the $45m Capital Raise. I suspect that there could be more to this and as we are still awaiting on previously stated BL ATM coy purchase (or in my mind possibly WL) I guess time will tell. Also AGS ATM's being handed back to some banks may come Findi's way as I think about 14,000 of these were SBI.

Also, under another post, I'd also like to raise the issue of the Indian government's consideration to reinstate Merchant Discount Rate (MDR) fees on Unified Payments Interface (UPI) and RuPay transactions for large merchants. This possibly presents significant revenue opportunities for Findi ATM's and its almost 200.000 digital payments merchants (FindiPay and BANKIT).

As always merely my thoughts and ideas ... Please Do Your Own Research ..

Cheers Anton.