- Conclusion / Investment Strategy
- Au Financiers (India) Limited IPO (Au Financiers IPO) Detail
- Company Financials:
- CSB BANK की तरह टूटेगा? UJJIVAN SMALL FINANCE BANK IPO LISTING DAY को खरीदें ? GREY MARKET PREMIUM
- Bumper debut: AU Small Finance Bank lists at Rs 528, zooms 47% over issue price
- Au small finance bank ipo listing
- related news
- AU Small Finance Bank IPO review (Subscribe)
AU Small Finance Bank Limited – IPO
Get on board the financial wave sweeping the country
Jaipur based AU Small Finance Bank Limited is a NBFC which provides finance to low and middle income individuals and small business which ideally don't have access to tap the formal banking and finance channels.
Details of the AU Small Finance Bank Ltd
Issuer: AU Small Finance Bank Limited
Issue opening date: Wednesday, 28th June, 2017
Issue closing date: Friday, 30th June, 2017
Price band: Rs355 to Rs358
Lot size: 41 Equity Shares and in multiple thereafter
Issue size: Offer for Sale of 53,422,169 Equity Shares.
Rs1860.98 Cr - Rs1876.74 Cr
Issue allocation: QIB - 50% NIB - 15% Retail - 35%
Employee Reservation: 1,000,000 Equity Shares available for allocation to Eligible Employees, on a proportionate basis
Mode of payment: ASBA Mandatory (No Cheque will be accepted)
BRLM: Citigroup Global Markets India Pvt.
Conclusion / Investment Strategy
Ltd, HDFC Bank Ltd, ICICI Securities Ltd and Motilal Oswal Investments Advisors Pvt Ltd
Registrar: Link Intime India Pvt. Ltd
Listing: Proposed to be listed on BSE and NSE
Company competitive strengths
- Diversified product portfolio and revenue streams
- Customer centric organizational commitment
- Significant presence in rural and semi-urban markets with focus on low and middle income customers.
- Robust and comprehensive credit assessment and risk management framework.
- Access to diversified sources of funding.
- Experienced management team and qualified operational personnel.
About the company
Incorporated in 1996, AU Small Finance Bank Limited (AU Small Finance) is a Jaipur, based non-banking finance company. Till now, they've focused on retail segment serving low and middle income individuals and businesses, which have limited or no access to formal banking and finance channels.
AU Small Finance operates in three areas:
2. Micro, small and medium enterprises (MSMEs) loans
3. Small and medium enterprises (SMEs) loans
On December 20, 2016, AU Small Finance received RBI license for Small Finance Bank (SFB). With this company is planning to offer a diverse suite of banking products in near future.
Key Timelines of AU Small Finance
- 1996 - Incorporated in Jaipur, Raj
- 2000 - Registered as an NBFC with the RBI
- 2005 - Became a commercial associate of HDFC Bank for originating and servicing vehicle loans
- 2007 - Started MSME loans
- 2011 - Started housing finance
- 2012 - Started SME loans
- 2016 - Received a license from the RBI to set up a 'small finance bank' (SFB).
Objects of the issue
Au Financiers (India) Limited IPO (Au Financiers IPO) Detail
Offer for Sale of 53,422,169 Equity Shares.
2. The Company expects that listing of the Equity Shares will enhance the visibility of thebrand and provide liquidity to its existing shareholders.
The Company will not receive any proceeds from this Offer. All proceeds from the Offer will go to each of the Selling Shareholders, in proportion to their portion of the Offered Shares.
How to apply
Please note that as per the new SEBI regulation all public offerings (IPOs) after January 1, 2016 need to be fulfilled through the ASBA (application supported block amount) route only.
These changes have altered the existing seamless online bidding process.
We are striving to make this process completely online for you again.
We seek your kind support in the interim.
To participate in the present IPO you are requested to kindly follow the under mentioned process:
- Click here to check if your bank is part of the ASBA participating bankers to this IPO
- If yes, download the “Blank Application Form” from the below link Download Blank Application Form
- Click here to check the steps to be followed on the given website
- Click here to check / download a duly filled up sample application form
- Kindly sign and fill up the downloaded application form with the required details
- Submit the application form at your nearest Sharekhan outlet
What is an IPO or public issue?
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
2. What is a price band?
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
Who decides the price band?
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
4. How is the IPO price determined?
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
What is a Red Herring Prospectus?
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
Who is a retail investor as far as IPO is concerned?
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
7. Can a retail investor also bid in a book-built IPO?
CSB BANK की तरह टूटेगा? UJJIVAN SMALL FINANCE BANK IPO LISTING DAY को खरीदें ? GREY MARKET PREMIUM
He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Bumper debut: AU Small Finance Bank lists at Rs 528, zooms 47% over issue price
Can bids in a book-built IPO be changed/revised?
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
Au small finance bank ipo listing
How can investors know the number of shares allotted to them?
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue.
The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
10. Which are the reliable sources for me to get information about response to IPOs?
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
How do I know if I am allotted shares?
And by what timeframe will I get a refund if I am not allotted?
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
12. How long will it take after the issue for the shares to get listed?
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.
Write to us at [email protected] or call us at 1800 22 7500.
We will be happy to answer all your queries.
- Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges, the Do’s & Don’ts and the T & C on www.sharekhan.com before investing. Investments in equity is subject to market risks. You are advised to carefully read the red herring prospectus of the company and go through all the Risk Factors mentioned in the offer document issued by the company before investing.
The investment as mentioned in the document may not be suitable for all investors. Investors may take their own decisions based on their specific investment objectives and financial position and using such independent advisors, as they believe necessary. Either SHAREKHAN or its affiliates or its directors or employees / representatives / clients or their relatives may have position(s), make market, act as principal or engage in transactions of purchase or sell of securities, from time to time or may be materially interested in any of the securities or related securities referred to in this report and they may have used the information set forth herein before publication.
- This mailer is the purpose of information only.
Invest only only after referring to the Red Herring Prospectus dated 14th June 2017.
Registered Office: Sharekhan Ltd, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp.
Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai - 400042, Maharashtra. Tel: 022 - 61150000.
AU Small Finance Bank IPO review (Subscribe)
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