AU Small Finance Bank has a bumper debut on the Bombay Stock Exchange. The stock price started off trading at Rs 528, a whopping jump of 47.5 percent (Rs 170) over the issue price of Rs 358.
At 10:06 hour IST, the stock price was trading at Rs 518.50, up Rs 160.50, or 44.83 percent.
It touched an intraday high of Rs Rs 544 (up 51.95 percent) and low of Rs 506.80 after strong opening.
The exchange has fixed upper circuit limit for the stock at Rs 630 and lower circuit limit at Rs 420.
The listing price premium of Rs 170 was well above expectations, as according to sources, the grey market premium was at around Rs 80.
AU Small Finance Bank received a license from the Reserve Bank of India to set up a small finance bank in December 2016 and commenced operations from April this year.
The initial public offer of AU Small Finance Bank, which was opened during June 28-30, was oversubscribed 53.60 times on strong response from QIBs and HNIs.The bank raised Rs 1,912 crore through the issue. The public issue was an offer for sale by promoters - Sanjay Agarwal, Jyoti Agarwal, Shakuntala Agarwal, Chiranji Lal Agarwal and MYS Holdings; and investors - Redwood Investment, International Finance Corporation, Labh Investments, Ourea Holdings and Kedaara Capital Alternative Investment Fund.