AU Small Finance Bank IPO Oversubscribed On Second Day
AU Small Finance Bank IPO was oversubscribed after strong demand from institutional investors.
The initial public offering of AU Small Finance Bank Ltd. was oversubscribed after strong demand from institutional buyers on the second day of bidding.
The bank received bids for 5.1 crore shares against the total issue size of 3.7 crore shares, data available with the National Stock Exchange as of 5 pm.
Qualified institutional buyers bid for 2.47 times the shares allotted to them. The portion reserved for high net worth individuals was subscribed 0.70 times while the retail investors portion was subscribed 1.07 times. The issue closes on Friday.
The Reserve Bank of India meanwhile removed the small finance bank from its caution list for monitoring of foreign investment under Portfolio Investment Scheme (PIS), saying the aggregate foreign shareholding in the company has gone below the threshold caution limit.
“…the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect,” RBI said in a release, adding that the aggregate limit of total foreign investment that can be received by the company will remain at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.
The company is looking to raise up to Rs 1,912 crore by selling up to 21 percent post issue of IPO. The price band for the offer is Rs 355-358 per share. The bank raised Rs 563 crore from 34 anchor investors earlier on Tuesday .
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.
ICICI Securities, HDFC Bank, Motilal Oswal Investment Advisors and Citigroup Global Markets India are the lead managers for the issue.