Camas Investments Pte Ltd., a wholly-owned subsidiary of private equity firm Temasek Holdings, will be picking up 4.81% stake in the Jaipur-based AU Small Finance Bank through preferential allotment of shares and convertible warrants for ₹1,000 crore.
Out of the ₹1,000 crore, ₹475 crore will come in June and the balance in December 2019, Deepak Jain, chief financial officer, AU Small Finance Bank, told The Hindu .
Other investors
At present, promoters hold 32% stake in the bank which will be diluted by 1.2% after the deal.
Other shareholders in the bank are Warburg Pincus, which has 15% stake, International Finance Corporation with 8% , Kedaara and ChrysCapital Investment advisors India with 4% each, among others.
AU Small Finance Bank — that started banking operations in 2017 — reported asset under management (AUM) growth of 49% year-on-year during the first year of operation.
The capital is raised to fuel further growth, Mr. Jain said.
“We are looking at 35-40% AUM growth for the next two years,” Mr. Jain said.
“We haven’t raised capital for a long time. We also wanted to maintain at least 18% capital adequacy ratio as compared to regulatory requirement of 15%,” he said. The lender’s capital adequacy ratio was 19.3% as on March 31 of which 18.4% was tier-I capital.
The bank had posted a net profit of ₹83 crore during January-March and ₹292 crore for the financial year 2017-18.
