Private sector lender AU Small Finance Bank saw as much as 1.4 percent equity change hands in four blocks on May 5, weighing down the share price by over 3 percent in early session. As a part of this block deal of 1.04 crore shares, major private equity players emerged as sellers in the trade.
While Moneycontrol couldn't immediately ascertain the buyers and sellers of the block deal, CNBC-TV18 reported citing sources that True North, Indium IV (Mauritius), and Silver Leaf Oak were likely sellers of 92.3 lakh shares of AU Small Finance Bank, which is 1.4 percent of the total equity and worth Rs 600 crore.
The floor price for the deal was reported to be Rs 650 per share, which is a 3.9 percent discount to the last closing price. As per reports, True North, Indium IV and Silver Leaf Oak-led block deal had Kotak Securities and Investec Capital as bankers.
It is among the most traded stock by value as per bloomberg. The trading volume is more than 4X its three-month full-day average.
READ MORE: LIVE updates and news storiesThe block deal is meant to offer partial exit for some of the existing investors, with True North already trimming its stake in the bank in recent years.
The banking sector is witnessing a rebound in valuation of shares, with private equity firms looking to monetise stake across the listed space. Strong earnings and stable asset quality may be the key factors, said analysts.
AU Small Bank released its Q4FY25 performance results last month, showing a net profit of Rs 503.7 crore, which was 36 percent higher than the year ago period. Total income for the quarter rose to Rs 5,031.27 crore, a rise from Rs 3,370.51 crore in Q4FY24. The bank's net interest income stood at Rs 4,270.60 crore, reflecting 51 percent increase year-over-year. The Board of AU Small had also recommended a dividend of Re 1 per equity share.
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