Jaipur-headquartered AU Small Finance Bank (SFB) on Wednesday launched a qualified institutional placement (QIP) to raise up to 2,500 crore, with a floor price of 590.84 per share. The SFB may offer a discount of not more than 5% on the floor price calculated for the issue, it said in a communication to the stock exchanges. In a separate notification, the lender said promoter, MD & CEO Sanjay Agarwal intends to sell up to 75 lakh shares of the bank. As a result of the sale, the shareholding of the promoters and the promoter group will come down to 27.02% from 28.21%.
AU SFB’s shares ended at Rs 609.35 on the BSE on Wednesday, down 1.42% from their previous close. Of the shares to be sold by Agarwal, up to 50 lakh will be sold for his family and personal financial needs and the remaining 25 lakh are to be sold by MYS Holdings, member of the promoter group of the SFB, in order to contribute to social and philanthropic causes, the notification said.
“The above-mentioned sale is to be carried out only post the completion of any private placement, preferential issuance, public offering or any other offering if undertaken in the next two months from the date of this letter, and such sale will be made at or above the price that may be finalised for issuance of equity shares in the offering and it shall be subject to receipt of pre-clearance and approvals as required under the Code of conduct – Prohibition of Insider Trading Policy of the Bank and under SEBI (Prohibition of Insider Trading) Regulations, 2015, and other requisite approvals as may be required in this regard,” Agarwal said in a communication to the exchanges.
A meeting of the capital raising committee of AU SFB is scheduled for August 8.