Shares in Indian-focused payments services company Findi surged after it confirmed an acquisition which it says will help transform it from an operator of automated teller machines (ATM) into a payments bank in the world’s most populous nation.
Trading in Findi shares resumed on the Australian Securities Exchange (ASX) after the company announced its majority owned Indian subsidiary Transaction Solutions International (India) Pvt Ltd (TSI India) had agreed to buy BankIT Services Pvt. Ltd for A$30 million.
The company also confirmed the float of TSI India remained on track for 2026.
At 12:45 pm AEDT (12:45 am GMT Monday) Findi (ASX: FND) shares were trading at $4.68, up 91.9 cents or 24.5% from the previous close, and capitalising the company at $229.8 million, which is still more than 40% below the price in November 2024.
Findi said the acquisition, which was expected to be completed before 30 June, would be funded from existing cash including $5.91 million on balance sheet, with another $19.54 million to be paid at completion and the final $4.55 million six months later.
Executive Chairman Nicholas Smedley said the acquisition was transformational for Findi on its pathway to becoming an Indian payments bank as BankIT accelerated the expansion and diversification of its offering and revenue streams.
“This acquisition is a gamechanger for Findi and positions us to play a pivotal role in India’s transition into digital banking over the next 5 to 10 years, further driving financial inclusivity and reshaping the financial landscape in India,” Smedley said in ASX announcement.
The acquisition also enhanced cross-selling opportunities, including insurance and other financial services, across the group’s core products and services while supporting Findi’s branded White Label ATM (WLA) strategy.
About 10,000, or 5%, of the combined 200,000 merchant locations would be potential sites for the roll-out of WLA locations.
Findi said it was the only Pan-Indian ATM operator with a nationwide digital business while its digital business FindiPay was self-funding and cash flow positive.
“We will now focus on consolidating recent acquisitions and executing the roll out of our WLA and Payments Bank strategies, while pursuing targeted bolt-on expansions and organic growth to further scale the business in preparation for the IPO of TSI India, which remains on track for calendar year 2026,” Smedley said.
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