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AU Small Finance Bank IPO

AU Small Finance Bank IPO to open on June 28: Here is all you need to know
This will be the fifth and last public issue for the month of June, followed by CDSL, Tejas Networks, GTPL Hathway and Eris Lifesciences.

The initial public offering (IPO) of AU Small Finance Bank will open for subscription on June 28, with a price band of Rs 355-358 per share.
This will be the fifth and last public issue for the month of June, followed by CDSL, Tejas Networks, GTPL  Hathway and Eris Lifesciences.
Bids can be made for a minimum of 41 equity shares and in multiples of 41 shares thereafter. The issue will close on June 30.

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Equity shares are proposed to be listed on BSE and National Stock Exchange of India. ICICI Securities, HDFC Bank, Motilal Oswal Investment Advisors and Citigroup Global Markets India will act as book running lead managers for the issue.
Here are key points that one should know about the issue & company and also check out what brokerage houses say:-
About the issue
The public issue of AU Small Finance Bank is an offer for sale of 5,34,22,169 equity shares by promoters and investors.
Promotors and promoter group - Sanjay Agarwal, (to sell up to 24.94 lakh shares), Jyoti Agarwal (23.63 lakh shares), Shakuntala Agarwal (22.74 lakh shares), Chiranji Lal Agarwal (12.9 lakh shares) and MYS Holdings (5.76 lakh shares) will sell their stake through OFS.
Other than promoters, Redwood Investment (up to 1.48 crore shares), International Finance Corporation (75.72 lakh shares), Labh Investments (1.12 crore shares), Ourea Holdings (1.03 crore shares) and Kedaara Capital Alternative Investment Fund (4.34 lakh shares) will also offload their shares in the offer.
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Offer includes a reservation of up to 10 lakh shares for subscription by eligible employees. The bidding for anchor investors' reserved portion will be opened for one day on June 27.
Objects of the issue
The objects of the offer are to achieve the benefits of listing equity shares on stock exchanges and for the offer for sale of 53,422,169 equity shares.
The company will not receive any proceeds from the offer. All proceeds from the offer will go to each of the selling shareholders, in proportion to its portion of the offered shares.
About the Company
AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused non-banking finance company (NBFC).
It primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.
It received a license from the Reserve Bank of India to set up an SFB on December 20, 2016 and commenced SFB operations on April 19, 2017. Prior to such date, the company was categorised as a 'systemically important, non-deposit accepting asset finance company' (NBFC-ND-AFC) by the RBI.
The company commenced operations in 1996 in Jaipur, Rajasthan and was registered as an NBFC with the RBI in 2000. In 2005, it became a commercial associate of HDFC Bank for originating and servicing vehicle loans.
AU operates in three business lines - vehicle finance; micro, small and medium enterprises (MSME) loans; and small and medium enterprises (SME) loans.
For the financial year 2017, the average ticket size of vehicle finance loans was Rs 3.4 lakh, MSME loans Rs 10.8 lakh and SME loans Rs 2.19 crore. As of March 31, 2017, 98.99 percent of its total receivables under financing activity were secured.


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