The AU Small Finance Bank counter saw some huge block deals on Friday.
The stock rose to Rs 714 on the National Stock Exchange (Rs 711 on BSE) and despite paring some gains subsequently, is up as much as 8.5% at Rs 698.60. The counter has clocked a volume of ver 2.3 million shares so far in the session.
On BSE, the AU Small Finance Bank counter has clocked a volume of nearly 27.2 million shares so far in the session, as compared to average daily volume of just around 38,000 shares.
Warburg Pincus has reportedly sold 5% stake in the company to a marquee investor in a block deal, as it was required to reduce its stake in the bank to below 10%, to comply with RBI regulations. It is also possible that Kedaara Capital and Chrys may have sold heavily at the AU Small Finance Bank counter.
AU Small Finance Bank MD and CEO Sanjay Agarwal has reportedly confirmed the block deal, but has not revealed details if the sale has anything to do with promoters and added that Warburg has to reduce its stake to less than 10% by end September.
"There were a lot many people who were in the race to pick this stake," he is quoted as saying by a media house.
The stock started its journey in the market in a splendid way, rising 51% to Rs 541.20, on its debut on 10 July 2018. It opened with a 47% premium to its issue price of Rs 358.
The company, formerly known as Au Financiers (India) Ltd, started operations in 1996 in Jaipur and got registered as a non-banking financialcompany in 2000. It got RBI's in-principle approval in 2015 to start a small finance bank. The company sought a valuation of Rs 10,175 crore through the IPO that closed on 30 June and was subscribed more than 50 times.
AU’s IPO comprised a complete offer-for-sale by private equity firms Warburg Pincus, Kedaara Capital, MYS Holdings Pvt. Ltd, ChyrsCapital Investment Advisors India and International Finance Corporation, apart from its promoters.
AU Small Finance Bank posted a net profit of Rs 77 crore in the quarter ended June 2018, up 24% over its net profit in the corresponding quarter last year. Total income was up 69% at Rs 703.33 crore in the quarter, compared to year-ago quarter.