AU Small Finance Bank IPO-May give Return like Ujjivan & Equitas on Listing Day.

AU Small Finance Bank

About Company

AU Finance, a Rajasthan Based non-banking finance company (NBFC), will launch its Initial Public Offer (IPO) on June 28. The price band for the IPO is Rs 355 to Rs 358 per share.
Company Got Small Banking Finance Licence from RBI on 20 December 2016.
IPO Details

IPO Open :   28-June-2017 to 30-June-2017
Face Value : Rs. 10 Per Equity Share
Issue Price : Rs. 355 – 358 Per Share
Bid Lot : 41 Equity Shares Then Multiply by 41 Shares
Issue Size : Rs.1912 Cr. on Upper End
Allotment On: 5-July-2017     ASBA Unlocking:        6-July-2017
Listing Date: 10-July-2017
Listing On : BSE and NSE Both Exchange

Company Promotors
1. Mr Sanjay Agarwal
2. Ms Jyoti Agarwal
3. Ms Shakuntala Agarwal
4. Mr Chiranji Lal Agarwal

Reason For Apply

1) AU will be the third Small Fianance Bank that will be listed. Equitas Small Finance Bank got listed in April 2016 and next month Ujjivan Small Finance Bank got listed too. Both Ujjivan and Equitas were operating as micro-finance entities at the time of getting listed. Both are listed Above IPO Price and Give handsome return to Investors.
2) Au Financiers currently has 300 branches spread across 11 cities, and proposes to increase them to 400 by March 2018. Going forward, the upcoming small finance bank will continue to focus on small and medium enterprise and vehicle loan segment.
3) At Rs.358 company will have market cap of Rs.10176 Cr. which is nearby as per FY17 data of Rs.10700 Cr. Submitted by company. As per the FY17 P/E is 31x is little high compare to peer company
4) Last and Most important is Its Latest Grey Market Premium is Near 105 Rs.
So Finally I suggest that we have to Apply AU Small Finance Bank IPO Only for Listing Gain not for Longterm Investment.
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1 Comment

  1. Amit

    Thanks for the Information sharing and spreading awareness .

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