New Delhi, Mar 16: The stock of AU Small Finance Bank jumped over 4 per cent in early trade on Tuesday after the company said it has raised Rs 625.50 crore by issuing shares to a set of investors through qualified institutional placement (QIP).
Shares of the company gained 4.27 per cent to Rs 1,238.05 on the BSE.
At the NSE, it rose by 4.13 per cent to Rs 1,237.65.
The bank has completed the allotment of equity shares under QIP and has successfully raised Rs 625.5 crore through the issuance of 50,00,000 equity shares at an issue price of Rs 1,251 per share, the bank said in a regulatory filing on Monday.
The issue was launched on March 9, with a floor price of Rs 1,181.06 apiece.
The QIP witnessed strong reception from both domestic and international institutional investors and the QIP was subscribed by sovereign wealth funds, large foreign portfolio investors, life insurance companies and domestic mutual funds, AU Small Finance Bank said.
AU Bank intends to use the net proceeds for supporting long-term growth aligned to the bank’s internal risk appetite, to maintain sufficient headroom over and above the regulatory capital adequacy requirements; and for general corporate requirements or any other purposes, it said. (PTI)