AU Small Finance Bank share price gains 4% after company raises Rs 625.50 crore vis QIP

Stocks

The share price surged 166 percent in the last 9 months.

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AU Small Finance Bank share price gained over 4 percent in the early trade on March 16 after company had raised Rs 625.50 crore through sale of shares to institutional investors.

“….. board approved allotment of 50,00,000 equity shares of face value Rs 10 each to eligible qualified institutional buyers at the issue price of Rs 1251 per equity share, i.e., at a premium of Rs 1241 per equity share aggregating to Rs 625,50,00,000,” the company said in BSE release.

The issue was opened on March 9 with a floor price of Rs 1,181.06 and closed on March 15.

Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the bank stands increased from Rs 307,08,99,980 consisting of 30,70,89,998 equity shares to Rs 312,08,99,980 consisting of 31,20,89,998 equity shares, company said.

The issue witnessed strong reception from both domestic and international institutional investors and 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 Rs 1,000 crore from Temasek in 2018 and 2019.

The share price surged 166 percent in the last nine months.

At 09:32 hrs, AU Small Finance Bank was quoting at Rs 1,219.90, up Rs 32.65, or 2.75 percent on the BSE.

ausmall

The share touched its 52-week high Rs 1,315.80 and 52-week low Rs 366.20 on 09 March, 2021 and 27 May, 2020, respectively.

Currently, it is trading 7.29 percent below its 52-week high and 233.12 percent above its 52-week low.