New Delhi: On Monday, Fincare Business Services sold 1.7 pc of its stake in AU Small Finance Bank to investors such as DSP Mutual Fund, Morgan Stanley, and Societe Generale (SocGen) for Rs 803 crore through an open market transaction. Fincare Business Services was the former owner of Fincare Small Finance Bank (SFB).
Last October, AU SFB and Fincare's board of directors gave the green light for a merger that would be based on all stock. This marked the initial merger within the small finance bank sector. In the block deal data from the National Stock Exchange (NSE), it was reported that Fincare Business Services sold over 1.27 crore shares, representing a 1.72 pc stake in Jaipur's AU Small Finance Bank.
The stocks were sold for an average of Rs 630 each, totaling Rs 803.63 crore. Following the most recent transaction, Fincare Business Services now holds a 6.32 percent stake in AU SFB, down from 8.04 percent. DSP Mutual Fund, BofA Securities Europe SA, Citigroup Global Markets, Morgan Stanely Asia Singapore, and Societe Generale all purchased shares of AU SFB.
The NSE saw AU Small Finance Bank's shares increase by 1.15 percent, ending the day at Rs 633 each. During the June quarter, AU SFB announced a 30 per cent increase in net profit to Rs 502 crore last month. In the previous year, the lender had made a net profit of Rs 387 crore. In the quarter, the bank's overall earnings rose to Rs 4,315 crore from Rs 2,773 crore in the previous year.
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