AU Small Finance Bank removed from RBI’s caution list amid IPO
Mumbai: The Reserve Bank of India (RBI) on Thursday removed AU Small Finance Bank Ltd. (AU SFB), from its caution list for monitoring of foreign investment under Portfolio Investment Scheme (PIS), saying the aggregate foreign shareholding in the company has gone below the threshold caution limit.
“…the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect,” RBI said in a release, adding that the aggregate limit of total foreign investment that can be received by the company shall remain at 49%.
The central bank routinely lists companies where foreign shareholding is approaching the permitted limit. On Tuesday, the RBI added AU SFB to the list, since foreign institutional investors’ (FII) holding in the company was close to the limit of 49% permitted for small finance banks. This meant FIIs could buy more shares in AU SFB only after obtaining prior RBI permission.
Meanwhile, the Jaipur-based small finance bank’s 1,912-crore initial public offering (IPO) was oversubscribed on Day two. The bank, which serves low and middle-income individuals and small businesses, saw its IPO subscribed 1.36 times by the end of Thursday, data on the National Stock Exchange (NSE) showed. It has set a share price band of Rs355-358 for the IPO.
Data from BSE showed that the portion reserved for qualified institutional buyers was subscribed 2.47 times, with no bids coming in from foreign institutional investors in the category.
The portion reserved for non-institutional investors, retail individual investors and employees was subscribed 0.70 times, 1.07 times, and 0.44 time respectively.
- P. Chidambaram moves Supreme Court for protection of his rights
- Fed resists upgrading long-run growth outlook after tax cuts
- Donald Trump names India, China to defend climate change policy
- GoAir flight with 112 on board grounded at Leh airport after technical glitch
- E-way bill set to roll out from 1 April, no consensus on simplification of GST returns