Fincare Business Offloads AU SFB Stake for Rs 804 Crore

AU Small Finance Bank Limited has rapidly grown to become a prominent player in the Indian banking sector, offering a wide range of financial products and services to individuals and businesses. With its strong focus on technology and innovation, the bank has provided its customers with convenient and efficient banking solutions. An important turning point in the history of the business was reached in 2017 when AU Financiers Ltd. was transformed into a small finance bank, enabling it to grow and provide a wider range of banking services. From that point on, AU Small Finance Bank has kept up its market dominance, drawing in a sizable clientele and developing a reputation for dependability and customer-focused services.

AU SFB block deal:

In an open market deal, Fincare Business Services sold a 1.7% share in AU Small Finance Bank on Monday for Rs. 804 crore to investors including Morgan Stanley, DSP Mutual Fund, and Societe Generale (SocGen). The promoter of the previous Fincare Small Finance Bank (SFB) was Fincare Business Services. The board of directors of Fincare and AU SFB authorized an all-stock merger in October of last year. It was the first merger in the history of small financial banks.

Block deal data available on the National Stock Exchange (NSE) indicates that Fincare Business Services offloaded approximately 1.30 crore shares, or 1.72%, of AU Small Finance Bank (AU SFB), a bank based in Jaipur. The deal value increased to Rs. 803.63 crore when the shares were sold for an average price of Rs. 630 each. Fincare Business Services’ ownership of AU SFB has decreased to 6.32% from 8.04% following the most recent transaction. DSP Mutual Fund, BofA Securities Europe SA, Citigroup Global Markets, Morgan Stanley Asia Singapore, and Societe Generale (SocGen) purchased these shares of AU SFB.

AU SFB bank performance:

For the June quarter, AU SFB reported a 30% increase in net profit to Rs 502 crore last month. In the same period last year, the lender made a net profit of Rs 387 crore. Compared to a year earlier, the bank’s total income increased to Rs 4,315 crore during the quarter from Rs 2,773 crore.

AU SFB stock price:

The AU Small Finance Bank Ltd. stock price is currently trading at Rs. 635.10 per share following yesterday’s block deal. In the morning session, the stock has only increased by 0.26% so far.

Conclusion: Yesterday’s block deal occurred according to the data available on NSE, facilitating the transfer of the previous promoters’ holdings to the new ones for AU Small Finance Bank.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.