Motilal Oswal: AU Small Finance Bank Sells 4.46% Stake In Aavas; Strengthens Capital Ratio
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Motilal Oswal Report
AU Small Finance Bank Ltd. informed the exchanges that it has sold 3.5 million shares in Aavas Financiers, representing 4.46% of its paid-up capital.
With this stake sale, the bank has divested almost its entire stake, with a mere 3,383 shares being held by it at present. The stake sale, at Rs 1,527 per share, represents a sale value of Rs 5.3 billion.
Consequently, the book value increases by 12%/10% for FY21E/FY22E.
The Tier I ratio for the bank strengthens by approximately 210 basis point to 20.4% versus 18.3% as at Q2 FY20-end.
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