GIC, Kuwait investment Authority among anchor traders in AU Small Finance bank
Private equity-backed AU Small Finance Bank Ltd has raised Rs 563 crore ($87 million) from a bunch of anchor investors including the sovereign wealth funds of Singapore and Kuwait ahead of its initial public offering that begins on Wednesday.
GIC Pte Ltd and Kuwait Investment Authority as well as US-based private equity firm East Bridge Capital bought 541,000 shares each at the upper end of the Rs 355-358 price band, a stock-exchange filing showed.
Other foreign investors who took part in the anchor allotment include the Master Trust Bank of Japan, Singapore hedge fund Amansa Holdings and investment funds of Nomura, Wells Fargo and HSBC. As many as 13 domestic mutual funds also bought shares.
Anchor investors are institutional investors who accept a one-month lock-in period for a sizeable allocation of shares and support a public offering.
The public issue of AU comprises a complete offer for sale by its private equity backers Warburg Pincus, Kedaara Capital, MYS Holdings Pvt. Ltd, ChyrsCapital Investment Advisors India and International Finance Corporation, besides its promoters.
The selling shareholders will raise as much as Rs 1,912.51 crore. The issue closes on Friday.
Jaipur-based AU Small Finance Bank, which was formerly known as Au Financiers (India) Ltd, is seeking a valuation of around Rs 10,176.18 crore ($1.6 billion) through the IPO.
This is the third public issue by a small finance bank in the last 15 months, after Equitas Holdings Ltd and Ujjivan Financial Ltd.
AU filed its draft red herring prospectus for an IPO on 2 February. The firm, which is among the 10 firms to receive RBI’s in-principle approval last year to start a small finance bank, received SEBI approval on 22 March.
ICICI Securities Ltd, HDFC Bank Ltd, Motilal Oswal Investment Advisors Pvt. Ltd and Citigroup Global Markets India Pvt. Ltd are financial advisors to AU’s IPO.
GIC Pte Ltd and Kuwait Investment Authority as well as US-based private equity firm East Bridge Capital bought 541,000 shares each at the upper end of the Rs 355-358 price band, a stock-exchange filing showed.
Other foreign investors who took part in the anchor allotment include the Master Trust Bank of Japan, Singapore hedge fund Amansa Holdings and investment funds of Nomura, Wells Fargo and HSBC. As many as 13 domestic mutual funds also bought shares.
Anchor investors are institutional investors who accept a one-month lock-in period for a sizeable allocation of shares and support a public offering.
The public issue of AU comprises a complete offer for sale by its private equity backers Warburg Pincus, Kedaara Capital, MYS Holdings Pvt. Ltd, ChyrsCapital Investment Advisors India and International Finance Corporation, besides its promoters.
The selling shareholders will raise as much as Rs 1,912.51 crore. The issue closes on Friday.
Jaipur-based AU Small Finance Bank, which was formerly known as Au Financiers (India) Ltd, is seeking a valuation of around Rs 10,176.18 crore ($1.6 billion) through the IPO.
This is the third public issue by a small finance bank in the last 15 months, after Equitas Holdings Ltd and Ujjivan Financial Ltd.
AU filed its draft red herring prospectus for an IPO on 2 February. The firm, which is among the 10 firms to receive RBI’s in-principle approval last year to start a small finance bank, received SEBI approval on 22 March.
ICICI Securities Ltd, HDFC Bank Ltd, Motilal Oswal Investment Advisors Pvt. Ltd and Citigroup Global Markets India Pvt. Ltd are financial advisors to AU’s IPO.
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