AU Small Finance Bank raises Rs 625.5 crore from buyers through certified institutional placement

Jaipur-based AU Small Finance Bank has raised Rs 625.50 crore by issuing shares to a set of buyers by means of certified institutional placement (QIP).
The financial institution has accomplished the allotment of fairness shares beneath QIP and has efficiently raised Rs 625.5 crore by means of the issuance of fifty,00,000 fairness shares at a problem value of Rs 1,251 per share, the financial institution stated in a regulatory submitting.
The concern was launched on March 9, with a ground value of Rs 1,181.06 apiece.

The QIP witnessed sturdy reception from each home and worldwide institutional buyers and the QIP was subscribed by sovereign wealth funds, giant international portfolio buyers, life insurance coverage firms and a home mutual funds, AU Small Finance Bank stated.
AU Bank intends to make use of the web proceeds for supporting long-term progress aligned to the financial institution’s inside danger urge for food, to keep up ample headroom over and above the regulatory capital adequacy necessities; and for normal company necessities or every other functions, it stated.
The allottees who’ve been allotted greater than 5 per cent of the fairness shares provided within the concern have been : Government of Singapore (26.69 per cent); Monetary Authority of Singapore (5.91 per cent), HDFC Life Insurance Co Ltd (23.60 per cent); and Small Cap World Fund, Inc (39.66 per cent).
“We have successfully closed the first ever QIP of the Bank. We received a strong reception from global and local investors which is a testament to the quality of our banking franchise and our future outlook,” stated Sanjay Agarwal, MD & CEO of AU Bank.
The Bank has emerged stronger after the pandemic, and the financial institution’s efficiency provides it better confidence to proceed serving the small companies and retail debtors within the underserved and unserved rural and semi-urban areas of the nation, Agarwal stated.

“We intend to use the net proceeds from this issue, amongst others, to support the long-term growth of the bank,” he added.
Stocks of AU SFB have been buying and selling at Rs 1,227 apiece on BSE, up 3.35 per cent.