AU SFB releases a QIP with a floor price of Rs590.84 per share for a Rs2,500 crore fund mop-up

4 Aug 2022 , 07:51 AM

The floor price for the issue was established at Rs590.84 per share by AU Small Finance Bank on Wednesday when it began its qualified institutional placement (QIP) to fund up to Rs2,500 crore. The capital raising committee for the bank met and made the choice.

AU Small Finance Bank has previously declared its intention to raise up to Rs2,500 crore by issuing equity shares through a QIP on April 29, 2021.

The floor price for the QIP is less than the stock’s Wednesday closing price on the BSE of Rs609.35.

Further, we would like to let you know that the bank’s capital raising committee will meet on August 8, 2022, to discuss and decide the issue price of any equity shares that will be issued, as well as any discounts from the floor price, according to AU SFB’s regulatory filing.

Separately, the firm announced that subject to required clearances, its promoter and MD and CEO Sanjay Agarwal intends to sell up to 75 lakh equity shares of the bank.

In a letter to the bank, Agarwal stated, “I along with members of the promoter group of the bank propose to sell up to 75,00,000 equity shares of the bank, out of the equity shares held by me and the members of the promoter group.”

In a regulatory filing, AU SFB stated that 50 lakh of the shares that the promoter and promoter group will sell will be sold by Agarwal for his family’s and personal financial requirements. Agarwal had previously informed the business that he intended to sell his shares.

He stated that any private placement, preferential issue, public offering, or other offerings “undertaken in the following two months from the date of this letter” will be completed before the promoter group makes any sales.

Additionally, he stated that the selling price of the shares that the promoters want to sell will be equal to or higher than any other offering’s potential final price.

The promoters and promoter group currently own 28.21% of the shares of AU SFB. After the sale is complete, their ownership will drop to 27.02%.