scorecardresearchAU Small Finance Bank raises ₹2,000 crore via QIP issue

AU Small Finance Bank raises 2,000 crore via QIP issue

Updated: 10 Aug 2022, 08:23 AM IST
TL;DR.

The Jaipur-based AU Small Finance Bank said its capital raising committee on Tuesday approved the allotment of 3,44,82,758 equity shares to the eligible qualified institutional buyers (QIBs) at an issue price of 580 per piece.

A vegetable vendor counts Indian rupee banknotes at a vegetable market in Mumbai, India, on Wednesday, July 20, 2022. The rupee slid to all-time low of 80.06 per dollar on Tuesday, and has lost 2.4% over the past month, the third-worst performing Asian currency over the period. Photographer: Dhiraj Singh/Bloomberg

A vegetable vendor counts Indian rupee banknotes at a vegetable market in Mumbai, India, on Wednesday, July 20, 2022. The rupee slid to all-time low of 80.06 per dollar on Tuesday, and has lost 2.4% over the past month, the third-worst performing Asian currency over the period. Photographer: Dhiraj Singh/Bloomberg

(PTI) AU Small Finance Bank has raised around 2,000 crore from qualified institutional investors against the target of up to 2,500 crore, according to a regulatory filing.

The qualified institutional placement (QIP) witnessed the participation of DSP, the Singapore government, Goldman Sachs and ICICI Prudential Life, among others.

The Jaipur-based small finance bank (SFB) said its capital raising committee on Tuesday approved the allotment of 3,44,82,758 equity shares to the eligible qualified institutional buyers (QIBs) at an issue price of 580 per piece.

It had set the floor price for the QIP at 590.84 per cent.

The QIP issue price was at a discount of 1.83 per cent or 10.84 per share aggregating to 19,99,99,99,640, the bank said in a regulatory filing.

The QIP issue opened on August 3 and ended on Monday.

On April 29, 2021, AU Small Finance Bank had announced its plan to raise up to 2,500 crore by issuing equity shares to QIBs.

Pursuant to the allotment of equity shares, the paid-up equity share capital of the bank stands increased to 664.67 crore, AU SFB said.

The lender said as many as seven participants in the QIP were offered more than 5 per cent each of the equity shares offered in the issue.

DSP Tax Saver Fund has been offered the highest number of shares at 41,75,344 (12.11 per cent) followed by the Government of Singapore (11.31 per cent), Small Cap World Fund Inc. (10.46 per cent) and New World Fund Inc (9.19 per cent).

ICICI Prudential Life Insurance Company, Government Pension Fund Global and Gold Sachs Funds - Goldman Sachs India Equity Portfolio were offered 5.95 per cent each of the number of shares under the QIP. 

First Published: 10 Aug 2022, 08:23 AM IST