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Jaipur-headquartered AU Small Finance Bank’s promoter Sanjay Agarwal has announced to sell 75 lakh equity shares in the bank along with other promoters. Agarwal who is also the MD and CEO of AU Small, along with other promoters will reduce his stake in the bank. The promoters’ share sale decision comes when the bank’s capital raising committee fixed a floor price for qualified institutions placement (QIP) of equity shares. Notably, the company also plans to offer a 5% discount on the floor price of QIP. Both the announcements were made on a Wednesday in a separate filing.
As per the regulatory filing, AU Small informed Sanjay Agarwal, Promoter and Managing Director & CEO of the bank of his intention to sell up to 75 lakh equity shares.
Agarwal in his letter to the Bank intimated that he and other promoter group members will be selling a portion of their shares held in the bank. The reason behind the stake sale for family and personal financial needs.
He said, “I, Sanjay Agarwal, Promoter, Managing Director, and Chief Executive Officer of the AU Small Finance Bank (”Bank”), wish to inform you that I along with members of promoter group of the Bank intend to sell up to 75,00,000 equity shares of the Bank, out of the Equity Shares held by me and the members of the promoter group, out of which, up to 50,00,000 equity shares are proposed to be sold for my family & personal financial needs.”
Agarwal also stated that the remaining 25 lakh equity shares in the bank will be sold by MYS Holdings.
“The current shareholding of the promoters and promoter group is at 28.21 % and after completion of the Sale the same shall come down to 27.02% (without adjustment for any Equity Shares that may be issued pursuant to the Offering, if any.),” Agarwal added.
In another regulatory filing, AU Small Finance Bank stated that the Capital Raising Committee of the Board has approved a floor price of ₹590.84 per equity share for the QIP. Also, the bank may offer a discount of not more than 5% on the floor price.
The QIP of equity shares will have a face value of ₹10 each.
However, AU Small said, “The issue price will be determined by the Bank in consultation with the book running lead manager appointed for the Issue.”
The bank’s capital raising committee is set to meet on August 8 to consider and determine the issue price under the QIP including the discount on the floor price.
On BSE, AU Small shares closed at ₹609.35 apiece down by ₹8.80 or 1.42%. The company’s market cap is around ₹38,400.41 crore.
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