AU Small Finance Bank (Jaipur Branch) has raised Rs 625.5 crore through qualified institutional placement by issuing shares to its investors (QIP). The issue debuted on March 9th with a floor price of Rs 1,181.06 per share. According to AU Small Finance Bank, the QIP received a positive response from both domestic and international institutional investors, with sovereign wealth funds, major foreign portfolio investors, life insurance firms, and domestic mutual funds subscribing.
According to a regulatory filing, the bank has completed the allotment of equity shares under QIP and has successfully raised Rs 625.5 crore through the issuance of 50, 00,000 equity shares at an issue price of Rs 1,251 per share. AU Bank intends to use the net proceeds to finance long-term growth that is consistent with the bank’s internal risk appetite, to retain ample headroom above regulatory capital adequacy requirements, and for general corporate purposes or any other purpose.
The allottees who received more than 5% of the equity shares offered in the issue were the Government of Singapore (26.6%), the Monetary Authority of Singapore (5.9%), HDFC Life Insurance Co Ltd (23.6%), and Small Cap World Fund, Inc. (39.6%). In a statement, Sanjay Agarwal, MD & CEO of AU Bank, said, “We have successfully closed the Bank’s first ever QIP and received a positive reception from global and local investors, which is a testament to the quality of our banking franchise and our future outlook.”
After the pandemic, the bank emerged stronger, and its success gives the bank more faith to continue serving small businesses and retail borrowers in the countries underserved and unserved rural and semi-urban areas. AU SFB stock was trading at Rs 1,227 per share on the BSE, up 3.3 %.
