AU Small Finance Bank makes a stock market debut at 52 per cent premium

Jaipur-based AU Small Finance Bank made its stock market debut on July 10 at a 52 per cent premium, after its initial public offering subscribed around 29 times in the previous week.
 
The small finance bank got listed at Rs 525 per equity share at a large premium of around 47 per cent, and touched a high of Rs 544 and a low of Rs 525, respectively. The stock that had an issue price of Rs 358 per share, moved up by Rs 172 or 48 per cent in Monday’s intraday trade to Rs 530 per share.
 
The IPO issue was oversubscribed by 53.6 times. The qualified institutional buyers (QIBs) category got oversubscribed by 78.77 times, while category reserved for non-institutional investors and retails investors witnessed an over-subscription of 143.51 times and 3.52 times, respectively.      
 
The raised funds worth Rs1,912 crore, with bids for 1.09 billion shares against a total issue size of 37.70 million shares. The IPO had a price band of Rs 355 to Rs 358 per share, with a minimum order quantity of one market lot comprising of 41 equity shares.              
 
The stock secured a market capitalisation worth Rs 15,000 crore, as it opened higher than the market capitalisation of most of the public sector banks including Indian Bank, IDBI Bank, Union Bank of India, Vijaya Bank and Syndicate Bank. While several private banks including City Union Bank, Karur Vysya Bank and DCB Bank had a market cap lower than AU Small Finance Bank.