AU Small Finance Bank shares gained about 6 percent on Thursday after the lender said it had launched a qualified institutional placement (QIP) totalling up to Rs 2,000 crore.

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A QIP allows a listed company to raise capital from domestic markets without the need to submit pre-issue filings to market regulators.

Issue size for the QIP has been fixed at Rs 570-590 per share, implying a discount of 3.2-6.5 percent from Wednesday's closing price. On Wednesday, the stock ended 1.4 percent lower at Rs 609.35 on the BSE.

At 10:05 am on Thursday, shares of the bank were trading 3.2 percent higher at Rs 628.85 on the BSE.

Further, the promoter and promoter group will sell up to 75 lakh equity shares. This forms 4.2 percent of promoter and promoter group holding in the firm.

The reason given behind the stake sale is family and personal financial needs.

Source: MarketsMojo

Post the QIP and promoter stake sale, the promoter’s stake may decline to 25.6 percent from 28.21 percent.

QIP book is fully subscribed as it sees excess demand from investors, sources told CNBC-TV18.

In July, the board had approved a proposal to raise Rs 3,000 crore equity.

AU Small Finance Bank reported a 32 percent year-on-year increase in first-quarter net profit at Rs 268 crore. It had reported a net profit of Rs 203 crore in the year-ago quarter.

The lender's assets under management grew 37 percent on a year-on-year basis to Rs 50,161 crore, while deposits rose by 48 percent to Rs 54,631 crore.

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