AU Small Finance Bank is in discussion to raise funds!

Following the bank’s announcement in its regular filing on June 23, 2023, that it intends to raise funds through the issuance of equity shares via private placement, qualified institutions placement (QIP), preferential allotment, or any combination thereof, or any other alternative mode, as may be deemed appropriate, subject to shareholder approval and government/regulatory/statutory approvals and requirements, as applicable.  

The bank also intends to borrow/raise money through the issuance of debt instruments such as Bonds and Non-Convertible Debentures (NCDs), as well as other such securities as may be approved by the RBI from time to time, subject to the requisite approvals and restrictions. The Bank’s Board of Directors will meet on June 29, 2023, to evaluate and approve the same, among other things.  

In the last trading session, the scrip closed at Rs 737.50. Today it opened at Rs 735.05 and has touched a high and low of Rs 749.20 and Rs 733.25, respectively. It was closed around Rs 745.95, up by 1.15%. The BSE group ‘A’ stock of face value of Rs 10 has a 52-week high of Rs 794.95 and a 52-week low of Rs 538.80. 

The promoters holding in the company stood at 25.54% while Institutions and Non-Institutions held 60.37% and 14.09% respectively. 

In Q4FY23 AU Small Finance Bank reported a 23% year-on-year rise in net profit to Rs 425 crore backed by a 37% higher net interest income. Total income for the quarter rose by 32% at Rs 2608 crore. The board would also consider convening annual general meeting and fixing a record date for dividend recommended by the board at its meeting held on April 25, 2023.

 AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail-focused nonbanking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.