Fincare Business Services Sells Stake in AU Small Finance Bank for Rs 803 Crore

Fincare Business Services sold a 1.7% stake in AU Small Finance Bank for Rs 803 crore to investors like DSP Mutual Fund and Morgan Stanley. This move comes after the two institutions approved an all-stock merger last year. The shares disposal decreased Fincare’s stake to 6.32%.

Fincare Business Services on Monday divested a 1.7% stake in AU Small Finance Bank to prominent investors such as DSP Mutual Fund and Morgan Stanley, raising Rs 803 crore through an open market transaction.

Previously the promoter of Fincare Small Finance Bank, Fincare orchestrated this sale after an all-stock merger approval between AU SFB and Fincare last year, marking the first merger in the small finance bank sector.

Block deal data from the National Stock Exchange (NSE) indicates that Fincare sold over 1.27 crore shares at an average price of Rs 630 apiece, resulting in Rs 803.63 crore. This reduces Fincare's stake in AU SFB from 8.04% to 6.32%.

(With inputs from agencies.)