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 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 On :||BSE and NSE Both Exchange|
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.
If You Like Our Article then Subscribe to Rejems By Email.
For More Article CLICK HERE.