AU Small Finance Bank Raises Rs 2,000 Crore Via QIP Issue

AU Small Finance Bank has raised around Rs 2,000 crore from qualified institutional investors against the target of up to Rs 2,500 crore, according to a regulatory filing.

The qualified institutional placement (QIP) witnessed the participation of DSP, the Singapore government, Goldman Sachs, and ICICI Prudential Life, among others.

The Jaipur-based small finance bank (SFB) said its capital raising committee on Tuesday approved the allotment of 3,44,82,758 equity shares to the eligible qualified institutional buyers (QIBs) at an issue price of Rs 580 per piece.

It had set the floor price for the QIP at Rs 590.84 per share.

The QIP issue price was at a discount of 1.83% or Rs 10.84 per share aggregating to Rs 19,99,99,99,640, the bank said in a regulatory filing.

The QIP issue opened on Aug. 3 and ended on Monday.

On April 29, 2021, AU Small Finance Bank had announced its plan to raise up to Rs 2,500 crore by issuing equity shares to QIBs.

Pursuant to the allotment of equity shares, the paid-up equity share capital of the bank stands increased to Rs 664.67 crore, AU Small Finance Bank said.

The lender said as many as seven participants in the QIP were offered more than 5% each of the equity shares offered in the issue.

DSP Tax Saver Fund has been offered the highest number of shares at 41,75,344 (12.11%) followed by the Government of Singapore (11.31%), Small Cap World Fund Inc. (10.46%) and New World Fund Inc. (9.19%).

ICICI Prudential Life Insurance Company, Government Pension Fund Global and Gold Sachs Funds - Goldman Sachs India Equity Portfolio were offered 5.95% each of the number of shares under the QIP.