AU Small Finance Bank IPO oversubscribed 53.5 times on stellar response

AU Small Finance Bank IPO oversubscribed 53.5 times on stellar response

The initial public offer of AU Small Finance Bank has received an encouraging response on Friday, the final day for subscription. It got bids for more than 201 crore equity shares against issue size of 3.76 crore shares (excluding anchor investors’ reserved portion).

The Rs 1,912-crore public issue has oversubscribed 53.48 times, as per data available on the exchange.

The portion set aside for qualified institutional buyers oversubscribed 78.77 times and non-institutional investors 143.51 times.

The reserved portion of retail investors oversubscribed 3.31 times.

AU Small Finance Bank already raised Rs 563 crore from 34 anchor investors on Tuesday, the day before the issue opened, at higher end of price band of Rs 355-358 per share.

The public issue is an offer for sale by promoters – Sanjay Agarwal, Jyoti Agarwal, Shakuntala Agarwal, Chiranji Lal Agarwal and MYS Holdings; and investors – Redwood Investment, International Finance Corporation, Labh Investments, Ourea Holdings and Kedaara Capital Alternative Investment Fund.

Hence, the company will not receive any proceeds from the offer.

AU Small Finance Bank received a license from the Reserve Bank of India to set up a small finance bank in December 2016 and commenced operations from April this year.

AU operates in three business lines – vehicle finance; micro, small and medium enterprises (MSME) loans; and small and medium enterprises (SME) loans.

Equity shares are proposed to be listed on BSE and National Stock Exchange of India. The book running lead managers to the offer are ICICI Securities, HDFC Bank (Investment Banking Group), Motilal Oswal Investment Advisors and Citigroup Global Markets India.

This was the fifth and last public issue for the month of June, followed by CDSL, Tejas Networks, GTPL Hathway and Eris Lifesciences.