Shares of AU Small Finance Bank were trading at Rs 516.85 at 10:43 IST on BSE, a 44.37% premium over its initial public offer price of Rs 358 on its debut today, 10 July 2017.
Meanwhile, the S&P BSE Sensex was up 199.48 points or 0.64% at 31,560.11.
The stock debuted at Rs 525, a premium of 46.65% over its issue price. The stock had hit a high of Rs 544 and a low of Rs 506.80 so far during the day. On the BSE, 1.92 crore shares were traded so far on the counter.
The IPO had received strong response from investors. It was subscribed 53.6 times. The price band for the IPO was fixed at Rs 355-358 per share.
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.
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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