Share price of AU Small Finance Bank jumped nearly 3 per cent during afternoon trading hours on Tuesday after the lender announced that it has completed the allotment of equity shares under Qualified Institutions Placement and has raised Rs 625.50 crore by issuing shares.
The issue was launched on March 9, with a floor price of Rs 1,181.06 apiece.
At 1.41 p.m., the stock of AU Small Finance Bank was trading at Rs 1,221.00,up by 2.84 per cent on the BSE. Earlier in the day, it had gained 4.27 per cent to hit Rs 1,238.05.
After rising by 4.13 per cent to Rs 1,237.65, bank’s share price were trading 2.94 per cent higher to Rs 1,223.50 on the NSE.
The bank has completed the allotment of equity shares under QIP and has successfully raised Rs 625.5 crore through the issuance of 50,00,000 equity shares at an issue price of Rs 1,251 per share, the bank said in a regulatory filing on Monday.
“The Issue was launched post market hours on March 9 with a Floor Price of ₹ 1,181.06 per share and witnessed strong reception from both domestic and international institutional investors and the entire QIP was subscribed by sovereign wealth funds, large foreign portfolio investors, life insurance company and domestic mutual funds,” it had said in a statement
“We have successfully closed the first ever QIP of the Bank. We received a strong reception from global and local investors which is a testament to the quality of our banking franchise and our future outlook,” said Sanjay Agarwal, MD & CEO of AU Bank.
AU Bank intends to use the net proceeds for supporting long-term growth aligned to the bank’s internal risk appetite, to maintain sufficient headroom over and above the regulatory capital adequacy requirements; and for general corporate requirements or any other purposes.
“We intend to use the net proceeds from this issue, amongst others, to support the long-term growth of the bank,” he added.