A man counts Indian rupee banknotes for a photograph near the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

AU Small Finance Bank Mops Up Rs 563 Crore From Anchor Investors

AU Small Finance Bank on Tuesday raised Rs 563 crore from anchor investors ahead of its three-day initial public offer which opens on Wednesday.

The company allotted 1.57 crore shares to 34 anchor investors, it said in a notice to the stock exchanges on Tuesday. It issued shares at the upper end of its IPO price band which has been fixed at Rs 355 to Rs 358 per share.

Government of Singapore, Kuwait Investment Authority, BlackRock, Nomura Singapore, HSBC Global Investment Funds – Indian Equity and Wells Fargo Emerging Markets Equity Fund are among the anchor investors. The company is looking to raise up to Rs 1,912 crore by selling up to 21 percent post-issue stake.

ICICI Securities, HDFC Bank (Investment Banking Group), Motilal Oswal Investment Advisors and Citigroup Global Markets India are managing the issue.

A day ahead of its IPO, the small finance bank was placed under the caution list by the Reserve Bank of India to monitor the foreign shareholding of the company which is hovering around the permissible limit of 49 percent.

AU Small Finance Bank received a licence from the RBI to set up a small finance bank in December 2016 and commenced operations from April this year.