Why has AU Small Finance Bank sold the stake in Aavas Financiers?
Answer
Answer
The AU Small Finance Bank based out of Jaipur in Rajasthan sold a total of 3.50 million shares of Aavas Financiers accounting for a 4.46% stake in Aavas. The total stake sale was worth Rs.530 crore. It may be recollected that Aavas Financiers is a mortgage financier. The average price of the sale was around Rs.1515.
Based on the latest shareholding data, AU Small Finance Bank held 4.57% stake in Aavas Financiers so this stake sale virtually reduces its stake in Aavas to a very insignificant number. Nomura India Mother Fund and SBI Life picked up 1.15% and 0.84% in Aavas Financiers respectively.
Aavas Financiers, listed company, reported net profits of Rs66cr for the Sep-20 quarter, a 15% fall from the corresponding quarter last year. However, total income for the Sep-20 quarter registered 17% growth at Rs. 270.5 crore.