New SBI ATM Tender.

May be something of interest here - assuming Findi have put a tender in for this.
I guess we will find out soon. Keep your eyes peeled. Thoughts on this welcome.
As always. Do Your Own Research….

Cheers Anton

SBI ATM Tender Overview

The State Bank of India (SBI) is procuring 11,000 ATMs under Phase XVIII, as per RFP SBI/ACV/2024-25/005. Below is the summary of key timelines and expectations:

1.Key Dates

•Bid Submission Deadline: July 30, 2024, 3:00 pm IST

•Technical Bid Opening: July 30, 2024, 3:30 pm IST

•Reverse Auction (Pricing Stage): Occurs after technical evaluation

•Award Notification: Letters of Intent (LOIs) to be issued after selection of L1, L2, and L3 bidders

2.Tender Award Process

•Technical Evaluation: August 2024 (1-2 months)

•Reverse Auction: September 2024 (1-2 weeks)

•Award Announcement: October-November 2024 (LOI sent to winners)

3.Expected Announcement Date

•The award was anticipated by October-November 2024, but delays could mean it will be announced by December 2024 or January 2025.

4.Possible Reasons for Delay

•Negotiations with L2 & L3 Bidders: If L2 and L3 do not match L1 pricing, alternative bids may be considered, causing delays.

•Regulatory Compliance & Banking Delays: As a public sector bank, SBI follows strict procurement guidelines, which may cause delays.

•Contract Complexity: Given the large volume (11,000 ATMs), the complexity of equipment delivery, and 7- to 10-year service commitments, the review may be taking longer than expected.

5.Where to Watch for Announcements

•SBI Tenders Awarded Page: View SBI Awards

•GeM (Government e-Marketplace) Portal: GeM Portal

•Official SBI Press Releases: Announcements may also be made on SBI’s website or via press releases.

Findi’s Position in the SBI Tender

Findi Limited (ASX: FND), via its subsidiary TSI India (Transaction Solutions International), is a key player in India’s non-bank ATM space. Its relationship with SBI and operational history strengthens its chances of securing a portion of the current 11,000 ATM tender.

1.Existing Contracts with SBI

•2016 Engagement: TSI India initially supplied and managed 3,912 ATMs for SBI under a third-party outsourcing agreement.

•October 2022 Extension: The agreement was extended to December 31, 2023, ensuring continuity of service until a new tender is awarded.

•October 2023 10-Year Contract: Findi secured a direct contract to supply and manage 4,219 ATMs over a 10-year period, expected to generate $550M to $620M in revenue and $250M to $280M in EBITDA.

•November 2023 Transition Contract: To bridge operations, the existing contract for 3,912 ATMs was extended to September 30, 2024, adding $27M to $29M in revenue and $9M to $10M in EBITDA.

2.Competitive Edge

•Proven Track Record: Successful execution of previous ATM deployments for SBI enhances Findi’s credibility as a service provider.

•Long-Term Partnership: SBI has consistently renewed and expanded contracts with Findi, demonstrating trust and operational reliability.

•Class I Local Supplier: Findi’s subsidiary, TSI India, may qualify as a Class I Local Supplier under India’s “Make in India” policy, giving it a competitive edge against international bidders.

•Expertise in Multi-Vendor Integration: Findi has experience integrating its ATMs with SBI’s Multi-Vendor Software (MVS), a key technical requirement in this tender.

3.Potential Award Split

•SBI may allocate 50% of ATMs to the lowest bidder (L1), 30% to L2, and 20% to L3.

•Even if Findi does not emerge as L1, it could still win a portion of the tender as L2 or L3.

4.Revenue & Business Impact

•If Findi secures a share of this 11,000 ATM tender, it would significantly boost Findi’s market share and revenue in India.

•Winning this tender could drive investor confidence and positively impact Findi’s stock price, as large, long-term government contracts typically influence market sentiment.

Summary

The SBI tender for 11,000 ATMs was expected to be awarded by October-November 2024, with potential delays pushing it to December 2024 or January 2025. Findi’s existing contracts, track record, and local supplier status significantly enhance its likelihood of being awarded a share of the tender. The competitive process will likely follow SBI’s plan to allocate the contract among multiple suppliers (L1, L2, and L3). If successful, Findi could secure a portion of the tender, increasing its market share, revenue, and stock valuation.