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According to a regulatory filing, AU Small Finance Bank has raised about 2,000 crore from qualified institutional investors, falling short of its goal of up to 2,500 crore. Among those that participated in the qualified institutional placement (QIP) were DSP, the Singaporean government, Goldman Sachs, and ICICI Prudential Life. The bank reported that on Tuesday, its capital raising committee authorised the distribution of 3,44,82,758 equity shares to qualified institutional buyers (QIBs) who qualified at an issue price of 580 per share.

The plan to generate up to 2,500 crore by issuing equity shares to QIBs was announced by the AU Small Finance Bank on April 29, 2021. The floor price for the QIP was established at 590.84 per cent, according to a regulatory filing by AU SFB. In a regulatory statement, the bank stated that the QIP issue price was at a discount of 1.83 per cent, or 10.84 per share, totalling 19,99,99,99,640. It commenced on August 3 and concluded on Monday. The paid-up equity share capital of the bank has grown to 664.67 crore as a result of the equity share allocation, according to AU SFB.

According to the lender, up to seven QIP participants received over 5% of the equity shares made available in the issuance. At 41,75,344 (12.11%), DSP Tax Saver Fund has been offered the most shares, followed by the Government of Singapore (11.31%), Small Cap World Fund Inc. (10.46%), and New World Fund Inc. (9.19 per cent). According to a regulatory filing, 5.95 per cent of the total number of shares were issued to ICICI Prudential Life Insurance Company, Government Pension Fund Global, and Gold Sachs Funds - Goldman Sachs India Equity Portfolio.

The bank has said in a regulatory filing that “In continuation of our letter reference no. AUSFB/SEC/2022-23/239 dated August 03, 2022, intimating about the meeting of the Capital Raising Committee for the issue was given, we wish to inform that the Capital Raising Committee at its meeting held today, i.e., August 08, 2022 has, inter alia, Determined and approved the issue price of Rs. 580 per Equity Share (including a premium of Rs. 570 per Equity Share) which is at a discount of 1.83% (i.e. Rs. 10.84 per Equity Share) to the floor price of Rs. 590.84 per Equity Share determined as per formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations, for the Equity Shares to be allotted to the eligible qualified institutional buyers in the Issue; Approved and finalised the confirmation of allocation note (CAN) to be sent to the eligible qualified institutional buyers, intimating them of allocation of Equity Shares pursuant to the Issue."

Today on August 9, 2022, the lender also said in a regulatory filing that “We wish to inform that the Capital Raising Committee today, i.e. August 9, 2022, has approved allotment of 3,44,82,758 (Three Crores Forty-Four Lakh Eighty-Two Thousand Seven Hundred and Fifty Eight) Equity Shares of face value Rs. 10 each to eligible qualified institutional buyers at the issue price of Rs.580 per Equity Share, i.e. at a premium of Rs. 570 per Equity Share which includes a discount of Rs. 1.83% (i.e. Rs. 10.84 per Equity Share) to the floor price of Rs. 590.84 per Equity Share aggregating to Rs. 19,99,99,99,640 (Rupees One Thousand Nine Hundred Ninety-Nine Crore Ninety-Nine Lakh Ninety Nine Thousand Six Hundred and Forty Only), pursuant to the Issue. The Issue opened on August 03, 2022 and closed on August 08, 2022 and the same was intimated to you through our letters dated August 03, 2022 and August 08, 2022, respectively. Pursuant to the allotment of Equity Shares in the Issue, the paid-up equity share capital of the Bank stands increased to Rs. 664,66,92,240 consisting of 66,46,69,224 Equity Shares."

The shares of AU Small Finance Bank Ltd closed today at 650.00 apiece, up by 0.31% from the previous close. On a YTD basis, the stock has gained 22.03% so far in 2022.

(With inputs from PTI)

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