AU Small Finance Bank Ltd on Tuesday said it has raised Rs625.5 crore through a qualified institutional placement (QIP) of 5 million equity shares at an issue price of Rs1,251 apiece.
The issue, the bank said, was launched post-market hours on 9 March at a floor price of Rs1,181.06 apiece and witnessed strong reception from both domestic and international institutional investors. It added that the entire QIP was subscribed by sovereign wealth funds, large foreign portfolio investors, life insurance company and domestic mutual funds.
“Since converting into a small finance bank in April 2017, this is the second primary capital infusion in AU Bank after raising ₹1,000 crore from Temasek in 2018 and 2019,” as per the statement.
AU Small Finance Bank said it intends to use the net proceeds for supporting the long-term growth, maintain sufficient headroom over and above the regulatory capital adequacy requirements, and general corporate requirements or any other purposes.
Sanjay Agarwal, chief executive of the bank said, “The bank has emerged stronger after the pandemic, and our performance gives us greater confidence to continue serving the small businesses and retail borrowers in the underserved and unserved rural and semi-urban regions of the country.”
Shares of AU Small Finance Bank traded at Rs1,215.95 on the BSE, up 2.4% from previous close.
