AU Small Finance Bank to launch IPO on June 28

Post AU's transformation from a prominent retail centred NBFC to a small finance banking major, the Rajasthan-based, AU Small Finance Bank is set to launch its IPO on Wednesday, June 28, 2017.

Entering the NBFC segment in the year 2000, the company became the commercial associate of HDFC in 2005, for providing and servicing vehicle loans. While in 2015, the company became the only asset-based non-banking finance company (NBFC) among the 10 companies that were granted the small finance bank licence. The company operates in vehicle finance segment, MSME loans and SME loans majorly.

The company is launching its IPO with an offer for sale of 5,34,22,169 equity shares by promoters and investors, and a price band of Rs 355-358 per share, which is being sought as a steep valuation by the market experts. The issue will close on June 30, 2017.

Following the IPO, the equity shares are expected to be listed on both BSE and NSE, with ICICI Securities, HDFC Bank, Motilal Oswal Investment Advisors and Citigroup Global Markets India as the book running lead managers for the IPO.

The company has reserved about upto 10 lakh shares for subscription by eligible employees.

The company reported a strong financial performance in the fiscal year 2017, with a net interest margin of 9.67 percent. While during FY13-FY17, the company posted a 30 percent annualised growth in its gross AUMs. The company also plans of setting up 162 new branches and seven central processing centres in fiscal 2018.