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.
You may Also Like: AU Small Finance Bank IPO
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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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