Receives bids for 96.44 crore shares
The initial public offer (IPO) of AU Small Finance Bank received bids for 96.44 crore shares on the last day of bidding, as per the data showed on NSE as at 17:00 IST. The IPO was subscribed 25.58 times. The IPO opened for bidding on 28 June 2017 and closes today, 30 June 2017.
The IPO comprises fresh issue of shares of Rs 5.34 crore. AU Small Finance Bank has raised Rs 563 crore by selling 1.57 crore shares to a total of 34 anchor investors ahead of the opening of the company's IPO. The shares were allotted to the anchor investors at Rs 358 per share, the top end of the Rs 355 to Rs 358 per share price band for the IPO.
AU Small Finance Bank initiated its operations in 1996 as retail focused non-banking finance company (NBFC) in Jaipur serving low and middle-income individuals and businesses having limited or no access to formal banking and finance channels. The company received a license from the Reserve Bank of India to set up a Small Finance Bank (SFB) along with nine other such entities on 30 December 2016 and recently commenced SFB operations with effect from 19 April 2017.
As an NBFC, the company operated in three business lines - vehicle loans, micro, small and medium enterprises (MSMEs) loans, and small and medium enterprises (SMEs) loans. After commencing SFB operations, the company has expanded and strengthened its business model to offer a diverse suite of banking products and services by leveraging asset-based lending strengths, NBFC customer base and cost efficient technology driven hub and spoke branch operating model.
The company has a network of 301 NBFC branches (bank has 269 branches, 121 asset centers, one central processing center and 10 offices end May 2017) spread across 10 states and one union territory in India, with significant presence in the states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh end March 2017. It plans to set up an additional 162 bank branches and seven central processing centers in FY2018.
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AU Small Finance Bank reported profit after tax of Rs 842.71 crore on income from operations of Rs 1416.99 crore in the year ended March 2017.
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