au small finance bank limited - ipo · initial public offer - note issue highlights: au small...
TRANSCRIPT
Call Toll Free 1800-425-8282
Initial Public Offer - Note
Issue Highlights:
Issuer: AU Small Finance Bank Limited
Issue Type: 100% Book Built Issue IPO
Issue Open: Wednesday, June 28, 2017
Issue Close: Friday, June 30, 2017
Issue Size (Rs): Offer for sale of 5,34,22,169 shares (Rs.
1,896.49* Cr – 1,912.51^ Cr)
Face Value: Rs.10 per Equity Share
Price Band: Rs. 355 – Rs. 358 per Equity Share
Minimum Order Quantity Retail: 41 Shares and in
multiples thereof
Maximum Bid amount for Retail: Rs. 2 Lakhs
Employee Reservation: 1,00,000 Equity Shares
Listing: NSE & BSE
Issue Size and Investor Category Allocation
Total Issue Size: 5,34,22,169 Equity Shares^
QIB: 50% of the issue size (2,62,11,083 Equity Shares^)
NIB: 15% of the issue size (78,63,326 Equity Shares^)
Retail: 35% of the issue size (1,83,47,760 Equity Shares^)
*Lower Price Bank, ^ Upper Price Band
Book Running Lead Managers:
ICICI Securities, Citigroup Global, HDFC Bank, Motilal Oswal
Registrar:
Link Intime India Pvt Ltd
Key Business Strategies:
Leverage Existing Capabilities and Customer Base as it
would transit into a Retail Focused SFB
Grow SFB Branch Network in the Existing Markets
Provide a Comprehensive Suite of Banking Services
Leverage Technology to Grow the Business
Enhance the Brand Presence
Key Strengths:
Diversified Product Portfolio and Revenue Streams
Customer Centric Organizational Commitment
Significant Presence in Rural and Semi-Urban Markets
with Focus on Low and Middle Income Customers
Robust and Comprehensive Credit Assessment and Risk
Management Framework
Access to Diversified Sources of Funding over the Years
Experienced Management Team and Qualified
Operational Personnel
Objects of the Issue:
1. To achieve the benefits of listing the Equity Shares on the
Stock Exchanges and for the Offer for Sale of 53,422,169
Equity Shares.
2. General Corporate Purpose.
Public issue of 5,32,22,169 equity shares of Rs. 10/- each
(“equity shares”) of AU Small Finance Bank Ltd (Company or
Issuer).
About the Issuer:
It is a prominent, retail focused non-banking finance company
(“NBFC”) primarily serving low and middle income individuals and
businesses that have limited or no access to formal banking and
finance channels. It operate in three business lines: vehicle finance;
micro, small and medium enterprises (“MSMEs”) loans; and small
and medium enterprises (“SMEs”) loans.
As part of current offerings, its vehicle finance business extends
loans for the purchase of new and pre-owned vehicles and for
refinancing of vehicles, which are primarily used for revenue
generating activities. For the six months ended September 30, 2016
and the financial year 2016, the average ticket size of its vehicle
finance loans was Rs.0.33 million and Rs.0.34 million, respectively
It has access to diverse sources of liquidity, such as term loans and
working capital facilities; proceeds from loans assigned and
securitized; proceeds from the issuance of non-convertible
debentures (“NCDs”) and commercial paper; and subordinated debt
borrowings from banks, mutual funds, insurance companies and
other domestic and foreign financial institutions to meet the funding
requirements.
Revenue from Operations (Rs. Millions)
Net Profit After Tax (Rs. Millions)
4106.565655.09
6870.2
10469.31
0
2000
4000
6000
8000
10000
12000
FY 13 FY 14 FY 15 FY 16
693.58 725.4
1394.5
2471.54
0
500
1000
1500
2000
2500
3000
FY 13 FY 14 FY 15 FY 16
AU Small Finance Bank Limited
AU Small Finance Bank Limited
Call Toll Free 1800-425-8282
SUMMARY STATEMENT OF ASSETS AND LIABILITIES, AS RESTATED
Initial Public Offer - Note
AU Small Finance Bank Limited
AU Small Finance Bank Limited
(₹ In Millions)
As at
September
30, 2016
As at
March
31, 2016
As at
March
31, 2015
As at
March
31, 2014
As at
March
31, 2013
As at
March
31, 2012
Equity and liabilities
Shareholders' funds
Share capital 457.25 440.81 440.81 429.64 404.71 925.75
Reserves and surplus 16,678.57 9,565.85 7,223.70 5,547.89 4,013.93 2,890.79
17,135.82 10,006.66 7,664.51 5,977.53 4,418.64 3,816.54
Non-current liabilities
Long-term borrowings 30,284.65 28,108.52 15,795.67 12,734.59 14,625.13 2,462.04
Other long-term liabilities 527.45 567.33 431.02 149.76 121.89 152.09
Long-term provisions 518.75 322.30 263.65 224.83 116.21 85.77
31,330.85 28,998.15 16,490.34 13,109.18 14,863.23 2,699.90
Current liabilities
Short-term borrowings 7,036.52 10,065.76 9,726.36 4,684.67 6,777.76 2,844.26
Other current liabilities 13,878.84 13,444.83 5,746.78 5,737.76 5,026.85 2,167.44
Short-term provisions 1,215.72 214.69 171.05 76.77 41.62 42.78
22,131.08 23,725.28 15,644.19 10,499.20 11,846.23 5,054.48
TOTAL 70,597.75 62,730.09 39,799.04 29,585.91 31,128.10 11,570.92
Assets
Non-current assets
Fixed assets
Property, Plant and Equipment 278.64 224.61 172.26 160.52 158.14 148.41
Intangible assets 17.39 17.44 12.88 8.08 8.14 2.27
Capital work-in-progress 176.25 3.91 4.66 - 1.37 2.42
Intangible assets under development 282.14 - - - - -
Non-current investments 993.14 593.43 1,126.53 873.61 566.72 305.50
Deferred tax assets (net) 101.79 211.15 363.77 306.14 156.56 87.54
Receivable under financing activity 39,596.71 37,804.55 22,481.63 14,914.13 11,930.39 5,676.41
Long-term loans and advances 89.81 88.51 117.54 162.25 129.75 220.04
Other non-current assets 52.98 64.48 54.35 45.32 430.89 482.26
41,588.86 39,008.08 24,333.62 16,470.05 13,381.96 6,924.85
Current assets
Current investments 2,625.26 1,722.26 271.87 261.98 6,820.16 3.63
Cash and bank balances 1,703.64 1,234.34 2,029.24 2,033.64 3,760.20 1,687.56
Receivable under financing activity 23,847.79 20,088.88 12,749.91 10,253.14 6,617.21 2,771.59
Short-term loans and advances 303.40 210.15 138.67 330.73 325.64 84.76
Other current assets 528.80 466.38 275.73 236.37 222.93 98.53
29,008.89 23,722.01 15,465.42 13,115.86 17,746.14 4,646.07
TOTAL 70,597.75 62,730.09 39,799.04 29,585.91 31,128.10 11,570.92
Call Toll Free 1800-425-8282
Source for Note: DRHP
IMPORTANT: Please read the Red Herring Prospectus of this issue carefully before investing in the same.
:: Research Desk :: :: Research Desk ::
E-mail:
Direct Ph: 040 3321 7132
Disclaimer
The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information
contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the
accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss
incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors.
Investors must make their own investment decisions based on their specific investment objectives and financial position
and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned
in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any
associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this
document.
PF/IPON/19062017/30
SUMMARY STATEMENT OF PROFITS AND LOSSES, AS RESTATED
Initial Public Offer - Note
AU Small Finance Bank Limited
AU Small Finance Bank Limited
(₹ In Millions)
for the half
year ended
For the year ended
September
30, 2016
March 31,
2016
March
31, 2015
March
31, 2014
March
31, 2013
March
31, 2012
Income
Revenue from operations 6,924.83 10,469.31 6,870.20 5,655.09 4,106.56 2,298.58
Other income 18.57 50.19 23.88 58.11 24.28 8.35
Total Revenue (I) 6,943.40 10,519.50 6,894.08 5,713.20 4,130.84 2,306.93
Expenses
Employee benefit expenses 748.11 1,577.27 945.16 696.77 526.83 385.93
Finance costs 2,525.67 3,952.53 2,819.74 2,875.60 1,971.84 1,033.39
Depreciation and amortization expense 25.72 85.21 65.15 32.96 29.11 17.25
Other expenses 751.80 875.24 504.44 404.19 408.61 258.11
Provisions and write offs 249.67 256.82 486.53 607.17 167.77 58.38
Total expenses (II) 4,300.97 6,747.07 4,821.02 4,616.69 3,104.16 1,753.06
Profit before exceptional items and tax (III)=
(I)-(II)2,642.43 3,772.43 2,073.06 1,096.51 1,026.68 553.87
Exceptional Item (IV) 6,702.98 - - - - -
Profit before tax (V)= (III)+(IV) 9,345.41 3,772.43 2,073.06 1,096.51 1,026.68 553.87
Tax expenses:
Current tax 2,339.06 1,150.78 756.58 507.70 401.34 240.62
Deferred tax 109.37 152.62 (57.63) (149.58) (69.01) (59.63)
Tax relating to earlier periods 44.13 (2.51) (20.39) 12.99 0.77 -
Total tax expenses (VI) 2,492.56 1,300.89 678.56 371.11 333.10 180.99
Profit after tax (as restated) (VII)=(V)-(VI) 6,852.85 2,471.54 1,394.50 725.40 693.58 372.88
Earnings per equity share
(including exceptional item)
Basic (Rs.) 154.77 56.07 31.85 17.91 20.40 22.25
Diluted (Rs.) 152.68 55.71 31.85 17.91 17.14 11.70
Nominal value per share (Rs.) 10.00 10.00 10.00 10.00 10.00 10.00
Earnings per equity share
(excluding exceptional item)
Basic (Rs.) 38.05 56.07 31.85 17.91 20.40 22.25
Diluted (Rs.) 37.54 55.71 31.85 17.91 17.14 11.70
Nominal value per share (Rs.) 10.00 10.00 10.00 10.00 10.00 10.00