SIngapore’s sovereign wealth fund GIC is among the anchor investors in the pre-IPO round of private equity-backed AU Small Finance Bank Ltd, which has raised Rs 563 crore ($87 million) from anchor investors based in Singapore and Kuwait. The public offer will close on 30 June.
Other investors in the pre-IPO round are the Kuwait Investment Authority, the Master Trust Bank of Japan, US-based East Bridge Capital, Singapore hedge fund Amansa Holdings and the investment funds of Nomura, Wells Fargo and HSBC.
ICICI Securities, HDFC Bank, Motilal Oswal Investment Advisors and Citigroup Global Markets India are the book running lead managers for the issue, with the public issue of AU Small Finance Bank offering 53,422169 equity shares from promoters and investors.
The Jaipur-based company is licensed to engage in small finance banking and maintains a network of 300 branches spread across the states of Gujarat, Maharashtra, Rajasthan, Delhi, Punjab, Haryana, Himachal Pradesh, Madhya Pradesh, Goa and Chhattisgarh.
Previously, it operated as a non-banking finance company (NBFC) – AU Financiers – across 10 states, before maturing into a small finance bank. It primarily serves low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.
Currently, AU operates three business lines. These are vehicle finance; micro, small and medium enterprises (MSME) loans; and small and medium enterprises (SME) loans. Itis seeking a valuation of around Rs 10,176.18 crore ($1.6 billion) through the initial public offer (IPO) and will see equity shares listed on the BSE and National Stock Exchange of India, both which rank among the largest bourses globally as at April 2017.
The IPO is an exit event for its private equity (PE) backers – Warburg Pincus, Kedaara Capital, MYS Holdings Pvt. Ltd, ChyrsCapital Investment Advisors India and International Finance Corporation – with their promoters disposing of their shares in the public listing as well.