AU Small Finance Bank stock under pressure post fund raising of Rs2,000 crore via QIP issue

10 Aug 2022 , 10:44 AM

AU Small Finance Bank has announced to the exchanges regarding raising around Rs2,000 crore fund from qualified institutional investors against the target of up to Rs2,500 crore.

According to the regulatory filing, the qualified institutional placement (QIP) witnessed the participation of DSP, the Singapore government, Goldman Sachs and ICICI Prudential Life, among others. The Bank informed that its capital raising committee on Tuesday approved the allotment of 3,44,82,758 equity shares to the eligible qualified institutional buyers (QIBs) at an issue price of Rs580 per piece.

Earlier, it had set the floor price for the QIP at Rs590.84 per cent. The QIP issue price was at a discount of 1.83 per cent or Rs10.84 per share aggregating to Rs19,99,99,99,640, the bank said in a filing on Tuesday. 

Further, the QIP issue opened on August 3 and ended on Monday. On April 29, 2021, AU Small Finance Bank had announced its plan to raise up to Rs2,500 crore by issuing equity shares to QIBs. 

Pursuant to the allotment of Equity Shares in the Issue, the paid-up equity share capital of the Bank stands increased to Rs664,66,92,240 consisting of 66,46,69,224 Equity Shares.

At around 10:10 AM, AU Small Finance Bank was currently trading at Rs649 per share down by Rs1.15 or 0.18% from its previous closing of Rs650.15 per share on the BSE.