- ICICI Prudential AMC gets approval to acquire up to 9.95% stake in AU Small Finance Bank
- Approval includes ICICI Prudential Mutual Fund schemes and portfolio management clients
- Clearance subject to RBI, FEMA, SEBI, and other regulatory compliances
The Reserve Bank of India has given its approval to ICICI Prudential Asset Management Company to acquire an aggregate holding of up to 9.95% in AU Small Finance Bank, according to the lender's exchange filing on Wednesday.
The approval covers up to 9.95% of AU Small Finance Bank's paid-up share capital or voting rights.
The approval has been granted to ICICI Prudential AMC along with the schemes of ICICI Prudential Mutual Fund, funds under its alternative investment funds and clients of its portfolio management services.
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The regulatory clearance is subject to compliance with the Banking Regulation Act, RBI directions, the Foreign Exchange Management Act, SEBI regulations and other applicable laws and guidelines.
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The approval gives ICICI Prudential AMC the regulatory headroom to build a significant holding in the small finance bank. The filing does not indicate that the entire 9.95% stake has already been acquired.
In today's trading session, AU Small Finance Bank shares closed at Rs 1,061.60 on September 9, down 1.13% or Rs 12.10 from the previous close of Rs 1,073.70.
The stock opened at Rs 1,070.90 and touched an intraday high of Rs 1,077.90 before falling to a low of Rs 1,060.50.
The bank had a market capitalisation of Rs 78,990 crore and a P/E ratio of 28.30. Its 52 week high stood at Rs 1,144.10, while the 52 week low was Rs 694.85.
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Despite Wednesday's decline, the stock has gained 52.21% over the past year, rising Rs 364.15 from its year ago level.
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