AU SMALL FINANCE BANK TO LAUNCH ITS IPO ON JUNE 28

Jaipur-based AU Small Finance Bank Ltd, which serves low and middle-income individuals and businesses, plans to launch its approximately ₹1,900crore initial public offering on June 28.

A price band of ₹355-358 per share has been set for the small finance bank’s initial share sale which will close on 30 June.

AU promoter Sanjay Agarwal and private equity investors Warburg Pincus, World Bank arm International Finance Corp., ChyrsCapital and Kedaara Capital will sell part of their stakes in the IPO, a pure offer for sale.

Collectively all the selling shareholders are offering 53.42 million shares, which at the upper end of the price band would mean an IPO size of ₹1,912.5 crore. The four PE investors are selling shares worth ₹1,574 crore.

The IPO values the company at a little over $1.5 billion. AU was established in 1996 in Jaipur.

ICICI Securities Ltd, HDFC Bank Ltd, Motilal Oswal Investment Advisors Ltd and Citigroup Global Markets India Pvt. Ltd are managing the share sale.

AU is the third of the 10 companies that were approved by the Reserve Bank of India in September 2015 for setting up small finance banks to initiate work on selling shares to the public.

Chennai-based microfinance lender Equitas Holdings Ltd and Bangalore-based Ujjivan Financial Services Ltd launched their IPOs almost a year ago.

AU launched its small finance bank operations in April.

According to the management, the bank has been able to collect deposits worth ₹600 crore from 40,000 customers post conversion. By March 2018, the bank expects to have 500 plus branches.