The initial public offering (IPO) of AU Small Finance Bank was subscribed 1.36 times on Thursday, the second day of the issue. Investors bid for 5.14 crore shares of the 3.76 crore shares on offer. The company priced its IPO, aimed at raising `1,912 crore, in a band of `355-358 per share. Qualified institutional buyers bid for 2.59 crore of the 1.04 crore shares reserved for them. High-net-worth individuals bid for 54.68 lakh shares of the 78.63 lakh shares reserved for them, bidding 0.7 times. Retail investors bid nearly 1.07 times or for 1.95 crore shares of the 1.83 crore shares reserved. Employees bid for 4.36 lakh shares of the10 lakh shares reserved for them. AU Small Finance Bank had on Tuesday allotted shares worth `563 crore to 34 anchor investors. The issue is an offer for sale of 5.3 crore shares by promoters, MYS Holdings, Redwood Investment, International Finance Corporation, Labh Investments, Ourea Holdings and Kedaara Capital. The company posted a restated profit of `842 crore for the year ended March 31, 2017; of this, about `517 crore came from the sale of a stake in Au Housing Finance and other subsidiaries. For the year ended March 31, 2016, the company posed a net profit of `247.1 crore.
The offer is being made through book building process, wherein not more than 50% of the shares are reserved for qualified institutional buyers (QIB) category, 15% for high net-worth individuals (HNIs) and 35% for retail investors. Up to 60% of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds. Five per cent of the QIB category, excluding the anchor investor portion, has been reserved for mutual funds on a proportionate basis. ICICI Securities, HDFC Bank Investment Banking Group, Motilal Oswal Investment Advisors and Citigroup Global Markets are the book running lead managers for the issue.