Fincare Business sells 1.7% stake in AU SFB for Rs803 cr
Over 1.27 cr shares were disposed of at an average price of Rs 630 apiece. These shares were acquired by DSP Mutual Fund, BofA Securities Europe SA, Citigroup Global Markets, Morgan Stanely Asia Singapore, and Societe Generale
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New Delhi: Fincare Business Services on Monday sold a 1.7 per cent stake in AU Small Finance Bank to investors like DSP Mutual Fund, Morgan Stanley and Societe Generale (SocGen) for Rs 803 crore via open market transaction. Fincare Business Services was the promoter of erstwhile Fincare Small Finance Bank (SFB). In October last year, the board of directors of AU SFB and Fincare had approved an all-stock merger. This was the first-ever merger in the small finance bank space.
According to the block deal data available on the National Stock Exchange (NSE), Fincare Business Services offloaded more than 1.27 crore shares, amounting to a 1.72 per cent stake in Jaipur-based AU Small Finance Bank (AU SFB). The shares were disposed of at an average price of Rs 630 apiece, taking the deal value to Rs 803.63 crore. After the latest transaction, Fincare Business Services' stakeholding in AU SFB has declined to 6.32 per cent from 8.04 per cent.
These shares of AU SFB were acquired by DSP Mutual Fund, BofA Securities Europe SA, Citigroup Global Markets, Morgan Stanely Asia Singapore, and Societe Generale. Shares of AU Small Finance Bank rose 1.15 per cent to close at Rs 633 apiece on the NSE. Last month, AU SFB reported a 30 per cent jump in net profit to Rs 502 crore for the June quarter. The lender had earned a net profit of Rs 387 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 4,315 crore against Rs 2,773 crore a year ago.
