AU Small Finance Bank shares trade 48% higher on stock market debut
Mumbai: The Bank’s small UA funds Monday launched the stock markets to 52% after its initial public offering (IPO) was subscribed nearly 29 times last week.
Shares opened at Rs525 on BSE and touched a high and a low of Rs544 and Rs506.80 respectively. At 14:40, the script was traded at Rs530.05 on BSE, 48% above its issue price of Rs358 per share.
The market capitalization of the UA Small Finance was Rs15 billion rupees during its opening, higher than the market limit of most public sector banks, such as India Bank, IDBI bank, Bank Union of India, Vijaya Bank and syndicate of banks.
Among private banks, Union Bank City, Karur Vysya Bank and Bank DCB had a market capitalization below the Small AU Finances.
After registration, it was number 16 among all banks in India. Among the power supply, the Bank finances small AU was seventh, while among private banks, which ranked tenth.
Among the non-bank financial companies (HBNCO) Hudco, Dewan Housing Finance Ltd, Bharat Financial Services Ltd, JM Financial Ltd, IDFC Ltd, Manappuram Finance Ltd, Equitas Holdings Ltd and Ujjivan Financial Services Ltd are among those with a lower ceiling Than the financial market AU Small.
However, in Small Finance it has a head and deposits much smaller than the banks. Beginning in fiscal year 2017, total placements stood at Rs 5,930.8 crore against Rs3,817.40 crore, while deposits were Rs6,608 crore at Rs5,789.30 crore.
“The AUSFB portion of very small lenders who receive these types of high performance relationships while offering a secured collateral, which is commendable.
Due to secured loans, the AUSFB is better placed to transition to smaller financial banks relative to competitors.
Having a strong retail asset book, it will help you create AUSFB responsibilities with a strategic focus on customers and averages to help better cross-sell opportunities, “said a research note Aditya Birla Money research published June 28 For its investors.
The IPO increased Rs1,912 million rupees and an auction reached 1.09 billion shares against the total issue size of 37.70 million shares, according to data available with the National Stock Exchange.
The category reserved for qualified institutional buyers was subscribed 78.77 hours, while the portion reserved for non-institutional investors and retail investors were subscribed 143.51 times and 3.52 times, respectively.
US small business developer Sanjay Agarwal and private equity investors Warburg Pincus, the arm of the World Bank, International Finance Corporation, ChrysCapital and Kedaara Capital sold all 53.42 million shares.
The Small Finance Bank of the UA was one of 10 NBFCs that obtained the Reserve Bank of India Approvals (RBI) in September 2015 for the creation of a small bank financing.
The bank has 301 branches of non-bank financial companies in 10 states and a Union territory with a significant presence in Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.
For fiscal year 2017, net income of Rs842.60 crore was recorded, including Rs517 crore of proceeds from the sale of investments in subsidiaries compared to Rs247.20 crore a year ago.
Net interest income increased by 40.7% over the previous year to Rs916.60 crore compared to Rs651.70 crore in the same period. Gross Assets Nonperformance percentages have increased by 1.6% from 0.6% over the same period.
The main officials of the offer are ICICI Securities, HDFC Bank (Banking Group), Motilal Oswal Investment Advisers and Citigroup Global Markets India.