AU Small Finance Bank (SFB) today said it will raise up to Rs 1,000 crore by issuing equity and warrant on preferential basis.
The company said it will issue 43,30,441 equity shares of bank at an issue price of Rs 692.77 per equity share aggregating to an amount of Rs 299,99,99612 to Camas Investments Pte Ltd (investor or allottee) as a non-promoter.
Besides, Rs 700,00,00,249 is to be raised by issuing 1,01,04,364 convertible warrants to investor carrying a right to the convertible warrant holder in one or more tranches at a price of Rs 692.77 per piece.
AU SFB said the bank has witnessed and continues to expect a sustainable demand for credit in the retail banking segment, small and mid-corporate segment and other segments to meet the capital requirement for expanding business, the bank is required to raise capital.
"The growth of the lending business, expansion of business verticals in terms of size, reach and to explore new digital and other initiatives, it is imperative that bank remains well-capitalised, with a strong capital base. Given the current economic environment and regulatory framework, maintaining a higher level of common equity tier I (CET 1) will reflect balance sheet's strength of the bank," it said in a regulatory filing.
The plan to raise capital is in line with the bank's desired capitalisation level for strong recalibrated growth on the banking platform and for potentially attractive growth opportunities, it added.
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"Therefore, in order to continue to meet the capital requirement while supporting the growth plans, the bank proposes to raise equity capital of Rs 1,000 crore," it said further.
Camas Investments Pte Ltd is an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited (Temasek). Temasek is a globally diversified investment company, headquartered in Singapore.
Shares of AU Small Finance Bank closed 2.31 per cent higher at Rs 704.85 apiece on BSE.