AU Small Finance Bank to raise ₹1000 cr from Temasek firm Camas

The board of Jaipur-headquartered AU Small Finance Bank has approved the issuance of 43,30,441 fully paid-up equity shares of face value of ₹10 each and issuance of 1,01,04,364 convertible warrants on a preferential basis to Camas Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings, at total subscription amount of ₹1,000 crore.

The convertible warrants carry an option to subscribe to an equivalent number of fully-paid up equity shares of face value of ₹10 each, the bank said in a stock exchange notification.

The Board approved the two issuances, which is subject to the approval of the Members, on May 19, 2018.

“Under the preferential allotment, the issue price of equity shares is ₹692.77 per equity share and the issue price of the convertible warrant is ₹692.77 per convertible warrant.

“Camas Investments Pte. Ltd. shall be entitled to exercise any or all of the convertible warrants, in one or multiple tranches, within 18 months from the date of allotment of convertible warrants,” the bank said.

The board also approved convening of an extraordinary general meeting, to obtain shareholder’s approval (by way of a special resolution) in relation to the preferential allotment.

The bank said the entire consideration payable for the issuance of equity shares will become payable on or before the date of allotment of equity shares.

According to the stock exchange notification, an amount equivalent to at least 25 per cent of the subscription consideration payable towards convertible warrants will become payable on or before the date of allotment of the warrants.

The balance 75 per cent of the subscription consideration payable towards convertible warrants will be paid at the time of exercise of the warrants by Camas Investments Pte Ltd, as per the notification.

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