Mumbai, June 19, 2017 (GPN) : AU Small Finance Bank Limited (the “Bank”, “Company” or “Issuer”), a small finance bank (“SFB”) primarily served low and middle-income individuals and businesses,proposes to open on 28th June, 2017, an initial public offering of 53,422,169 equity shares of face value of Rs. 10 each (“Equity Shares”) for cash (including a share premium) (the “Offer”) through an offer for sale of up to 2,494,769 Equity Shares by Mr. Sanjay Agarwal, 2,363,712 Equity Shares by Ms. Jyoti Agarwal, 2,274,326 Equity Shares by Ms. Shakuntala Agarwal, 1,290,449 Equity Shares by Mr. Chiranji Lal Agarwal (together, the “promoter selling shareholders”), 576,744 Equity Shares by MYS holdings private limited (“MYS” and “Promoter Group Selling Shareholder”), 14,800,000 Equity Shares by Redwood Investment Ltd (“Redwood”), 7,572,169 Equity Shares by International Finance Corporation (“IFC”), 11,250,000 Equity Shares by Labh Investments Limited (“Labh”), 10,365,368 Equity Shares by Ourea holdings limited (“Ourea”), and up to 434,632 Equity Shares by Kedaara Capital Alternative Investment Fund (“Selling Shareholders”).
The Offer includes a reservation of up to 1,000,000 equity shares, for subscription by eligible employees not exceeding 5% of the post-Offer paid up Equity Share capital (the “Employee Reservation Portion”). The Offer less the Employee Reservation Portion is hereinafter referred to as the “Net Offer”.
The Price Band for the Offer is fixed from Rs. 355 to Rs. 358 per Equity Share. Bids can be made for a minimum of 41 Equity Shares and in multiples of 41 Equity Shares thereafter. The Bid/ Offer will close on 30thJune, 2017.
In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) and in accordance with Regulation 26(2) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the “SEBI ICDR Regulations”), the Offer is being made through the Book Building Process, wherein not more than 50% of the Net Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Category”), provided that our Company and the Selling Shareholders , in consultation with the Book Running Lead Managers, may allocate up to 60% of the QIB Category to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (the “Anchor Investor Portion”), of which one-third is to be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Offer Price. Further, 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.
All investors (except Anchor Investors) shall mandatorily participate in this Offer only through the Application Supported by Blocked Amount (“ASBA”) process, and shall provide details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”).
The Book Running Lead Managers (“BRLMs”) to the Offer are ICICI Securities Limited, HDFC Bank Limited (Investment Banking Group), Motilal Oswal Investment Advisors Limited (Formerly Motilal Oswal Investment Advisors Private Limited) and Citigroup Global Markets India Private Limited.
The Equity Shares offered through the RHP are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). NSE is the designated stock exchange.ENDS.
The RHP is available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.com,www.nseindia.com, respectively, the BRLMs atwww.icicisecurities.com, www.hdfcbank.com,www.motilaloswalgroup.com andhttp://www.online.citibank.co.