Bundles of Indian one hundred rupee bills are pictured at a bank in Mumbai (Photographer: Abhijit Bhatlekar/Bloomberg News)

AU Small Finance Bank IPO Subscribed Over 53 Times On Final Day

The initial public offering of AU Small Finance Bank Ltd. was subscribed 53.54 times the number of shares offered on the third and final day of bidding.

The lender received bids for over 20 crore shares against the total issue size of 3.7 crore shares as of 7 p.m, according to issue manager Axis Capital.

Qualified institutional buyers bid for nearly 78.77 times the shares allotted to them. The portion reserved for high net worth individuals was subscribed over 143.51 times while the retail investors portion was subscribed 3.40 times.

The company is looking to raise up to Rs 1,912 crore by selling up to 21 percent equity in the share sale. The price band for the offer set at Rs 355-358 per share.

The bank lends to low and middle-income individuals and small and medium businesses. Vehicle loans contribute half of its advances and the lender plans to enter gold, housing and farm lending segments, according to its draft red herring prospectus.

AU Small Finance Bank will not require additional capital for at least 3 to 5 years even if it continues its growth momentum, managing director and chief executive officer, Sanjay Agarwal told BloombergQuint. (Catch the entire interaction here)

The Reserve Bank of India on Wednesday, removed the small finance bank from its caution list. “The restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect,” the central bank said in a release, adding that the aggregate limit of total foreign investment that can be received by the company will remain at 49 percent.

ICICI Securities, HDFC Bank, Motilal Oswal Investment Advisors and Citigroup Global Markets India are the lead managers for the issue.