Avendus Capital Acts as Book Running Lead Manager to Au Small Finance Bank’s INR 2,000 cr QIP

AU Small Finance Bank, India’s largest small finance bank, recently raised INR 2,000 crore (USD 253 million) via the Qualified Institutional Placement (QIP) route. The deal was successfully priced at INR 580 per equity share, a tight 1.8% discount to its floor price of INR 590.84 per share. The issue witnessed strong investor demand with 4x oversubscription, despite volatile markets and the rising inflation scenario globally. Major participants in the QIP included sovereign funds like Government of Singapore and Norges Bank, FIIs such as Capital Group, Goldman Sachs Asset Management and DIIs like HDFC MF, ICICI Prudential Life Insurance, DSP MF and Nippon MF, among others. The company will utilise the proceeds towards enhancing its tier 1 capital base and supporting the growth aspirations of the bank.

Avendus Capital acted as Book Running Lead Manager (BRLM) to the INR 2,000 crore issue.

Deal Value

INR 2,000 cr

Service

Equity Capital Markets | QIP

Sector

Financial Institutions Group

Date

August 2022

I am deeply grateful to all our existing shareholders for their participation in this issue and also welcome all the incoming newer investors – both FIIs and domestic investors, for their confidence in us and in supporting our growth plans. Our objective remains to build a bestin-class, tech-led retail Bank in India with a very sustainable business model and the fresh capital will significantly help us in that journey. I remain a strong believer that this decade will be India’s and hope that the success of our QIP and Tier II issue and the overwhelming demand from FIIs will augur well for the overall sector.

Sanjay Agarwal

MD & CEO, AU Small Finance Bank

We are privileged to partner with AU Small Finance Bank on its largest ever primary equity capital raise and are very confident about the bank’s mission to become a best-in-class, tech-led retail bank in India. The bank continues to enjoy strong interest from top FIIs and DIIs and this fundraise will further help it in scaling up its digital initiatives and tech infrastructure, enabling it to achieve its goals.

Gaurav Sood

Managing Director & Head, Equity Capital Markets, Avendus Capital

AU has created a differentiated positioning of being the only truly secured retail franchise which sets it apart from its peers. Focused on building a digital ecosystem and having a tech-powered approach has enabled it to be one of the fastest growing banks with consistent earnings and strong fundamentals. We believe this fundraise will pave the way for the next leg of growth and will enable continued value creation.

Anshul Agarwal

Managing Director & Head, Financial Institutions Group Investment Banking, Avendus Capital

About AU Small Finance Bank

AU Small Finance Bank is India’s largest small finance bank in terms of market capitalisation, deposits and AUM. The bank has operations across 20 states and 2 union territories and has a deposit and AUM base of INR 54,631 crores and INR 50,161 crores respectively as of June 2022 with the book mainly spread across vehicle and MSME financing.