Hindustan Times ST (Jaipur) - - World - Swaraj Singh Dhan­jal

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.