AU Small Finance Bank surges on raising Rs 2,500 crore via QIP
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AU Small Finance Bank is currently trading at Rs. 657.15, up by 13.00 points or 2.02% from its previous closing of Rs. 644.15 on the BSE.
The scrip opened at Rs. 652.85 and has touched a high and low of Rs. 659.00 and Rs. 649.30 respectively. So far 10928 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 732.90 on 21-Apr-2022 and a 52 week low of Rs. 467.50 on 27-Dec-2021.
Last one week high and low of the scrip stood at Rs. 656.90 and Rs. 628.15 respectively. The current market cap of the company is Rs. 43402.90 crore.
The promoters holding in the company stood at 28.21%, while Institutions and Non-Institutions held 53.48% and 18.31% respectively.
AU Small Finance Bank has raised total capital of Rs 2,500 crore comprising of Tier I equity capital of Rs 2,000 crore via Qualified institutional placement (QIP) route and Tier II capital of Rs 500 crore by issuing 10-year subordinated bonds. This takes the Bank’s overall capital adequacy ratio (CRAR) from 19.4% to 25.7% (as on June 30, 2022 on pro-forma basis). The fresh capital will be used to support the Bank’s growth plans over the medium term and will help maintain sufficient headroom over and above the regulatory capital adequacy requirements.
The QIP issue of Rs 2000 crore was launched on August 03 2022 at a price band of RS 570 – Rs 590 per share and witnessed strong demand from both Foreign Institutional Investors (FII) & Domestic Institutional Investors (DII), and the QIP issue was oversubscribed 4x with bids crossing $1.01Bn and strong interest from marquee investors like sovereign wealth funds, large foreign portfolio investors, global asset managers, domestic insurance companies and mutual funds. The Capital Raising Committee (CRC) of the Bank fixed the issue price at Rs 580 per share and approved allotment of 3,44,82,758 Equity Shares of face value Rs 10 each to 67 allotted bidders.
AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused nonbanking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.
