Foreign Investors Can Now Buy Shares In AU Small Finance Bank
RBI removes restrictions on purchase of shares by foreign investors.
The Reserve Bank of India has removed restrictions placed on purchase of shares in AU Small Finance Bank by foreign investors with the total foreign investment coming below the threshold caution limit.
The aggregate limit of total foreign investment that can be received by the company shall remain at 49 percent, the RBI said in a statement.
The restrictions placed on "the purchase of shares of the above company are withdrawn with immediate effect", the statement said.
AU Small Finance Bank (SFB) has hit the capital market with an IPO to raise around Rs 1,900 crore. Its share sale of more than 3.7 crore shares was subscribed more than two times on the second day of the offer on Thursday.
The company had already raised Rs 563 crore from 34 anchor investors.
AU Small Finance Bank received licence from the RBI to set up a small finance bank in December 2016 and commenced operations from April this year.