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Au Financiers (India) Limited IPO (Au Financiers IPO) Detail

Jun 28, 2017 - Jun 30, 2017

Incorporated in 1996, Au Financiers (India) Ltd is Jaipur Rajasthan based non-banking finance company focused on retail segment serving low and middle income individuals and businesses that have limited or no access to formal banking and finance channels.

Au Financiers operate in 3 business lines:
1. Vehicle finance
2. Micro, small and medium enterprises (MSMEs) loans
3. Small and medium enterprises (SMEs) loans

On December 20, 2016, Au Financiers received RBI license for Small Finance Bank (SFB). With this company is planning to offer a diverse suite of banking products in near future.

Key Timelines of Au Financiers:
• 1996 - Incorporated in Jaipur, Raj
• 2000 - Registered as an NBFC with the RBI
• 2005 - Became a commercial associate of HDFC Bank for originating and servicing vehicle loans
• 2007 - Started MSME loans
• 2011 - Started housing finance
• 2012 - Started SME loans
• 2016 - Received a license from the RBI to set up a 'small finance bank' (SFB).

As of December 31, 2016, company had 300 branches spread across 10 states and one union territory in India, with significant presence in the states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh and employed 6,092 personnel serving 270,692 active loan accounts.

Competitive 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

Company Promoters:

The promoters of the company are:

1. Mr Sanjay Agarwal
2. Ms Jyoti Agarwal
3. Ms Shakuntala Agarwal
4. Mr Chiranji Lal Agarwal

Company Financials:

Summary of financial Information (Consolidated)
Particulars For the year/period ended (in Rs. Million)
31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13
Total Assets 98,176.41 62,730.09 39,799.04 29,585.91 31,128.10
Total Revenue 14,305.21 10,519.50 6,894.08 5,713.20 4,130.84
Profit After Tax 8,427.13 2,471.54 1,394.50 725.40 693.58

Issue Detail:

  »»  Issue Open: Jun 28, 2017 - Jun 30, 2017
  »»  Issue Type: Book Built Issue IPO
  »»  Issue Size:
    ›  Offer for Sale of 53,422,169 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
  »»  Face Value: Rs 10 Per Equity Share
  »»  Issue Price: Rs 355 - Rs 358 Per Equity Share
  »»  Market Lot: 41 Shares
  »»  Minimum Order Quantity: 41 Shares
  »»  Listing At: BSE, NSE

Au Financiers IPO Reviews:

  1. Au Financiers (India) Limited IPO review by Dilip Davda

Au Financiers IPO Recommendations:

Capital Market Review

Issue Subscription Detail / Current Bidding Status

Number of Times Subscribed (BSE + NSE)
As on Date & TimeQIBNIIRIIEmployeeTotal
Shares Offered / Reserved10,484,4347,863,32618,347,7601,000,00037,695,520
Day 1 - Jun 28, 2017 17:00 IST0.00000.08000.32000.16000.1800

Au Financiers IPO Prospectus

Au Financiers IPO Rating

827
4.0
Rating:Rated 4.0 stars

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Au Financiers IPO News Alerts

  1. Friday, June 30, 2017 12:00:00 AM
    Au Financiers (India) Limited IPO - Close
  2. Wednesday, June 28, 2017 12:00:00 AM
    Au Financiers (India) Limited IPO - Open
  3. Thursday, June 15, 2017 8:19:36 PM
    AU Small Finance Bank opens branch in Mumbai

Company Contact Information

Au Financiers (India) Limited
19 - A Dhuleshwar Garden,
Ajmer Road,
Jaipur - 302001
Phone: +91 141 4110060
Fax: +91 141 4110090
Email: ipo@aufin.in
Website: http://www.aufin.in

Au Financiers IPO Registrar

Link Intime India Private Ltd   »  Report
   Link Intime India Private Ltd,
   C-13 Pannalal Silk Mills Compound,
   LBS Marg, Bhandup West, Mumbai 400078

Phone: +91-22-25963838
Fax: +91-22-25946969
Email: aufin.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

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Au Financiers IPO Review / Comments

avatar
188. Septa  Jun 28, 2017 8:46:36 PM IST I Like It. 16 | Report Abuse Reply
IPO Guru IPO Guru (3700+ Posts, 2700+ Likes)
AU finance is a stock which u want in portfolio this company was CARG is 45% with Indian mindset moving from buy when u have cash to buy if you can pay the EMI. Au finance is a business on this model with 300000 customers with a loan book of 6500 crs and average loan size is approx 2 lakhs. most is backed by physical assets.

In my modelling i have put a growth rate on 22% in my DCF model only when the company has grown at 45% IMO the fair value of AU is close to Rs 500 with 25% MIS it will have bumper listing this animal is best of the last three SME banks equitas, ujjivian this is the superstar equitas and ujjivian are just supporting actors in this setup

Initial Cash Flow:       ₹3,26,00,00,000.00                   
                        
Years:      1-5      6-10            
Growth Rate:      20%      15%            
                        
Terminal Growth Rate:      5%            Discount Rate:      10%
                        
Shares Outstanding:      28,42,50,906            Margin of Safety:      25%
Debt Level:                        
                        
Year      Flows      Growth      Value      
1      3,91,20,00,000       20%       ₹3,55,63,63,636.36       
2      4,69,44,00,000       20%       ₹3,87,96,69,421.49       
3      5,58,63,36,000       19%       ₹4,19,70,96,919.61       
4      6,64,77,39,840       19%       ₹4,54,04,95,758.49       
5      7,84,43,33,011       18%       ₹4,87,07,13,631.83       
6      9,25,63,12,953       18%       ₹5,22,49,47,350.51       
7      10,82,98,86,155       17%       ₹5,55,74,44,000.09       
8      12,67,09,66,802       17%       ₹5,91,10,99,527.37       
9      14,69,83,21,490       16%       ₹6,23,35,23,137.95       
10      17,05,00,52,928       16%       ₹6,57,35,33,490.93       
                        
                        
Terminal Year       ₹17,90,25,55,574.73                   
                        
PV of Year 1-10 Cash Flows:                   ₹50,54,48,86,874.62       
                        
Terminal Value:                   ₹1,38,04,42,03,309.50       
                        
Total PV of Cash Flows:                   ₹1,88,58,90,90,184.11       
                        
Number of Shares:                  28,42,50,906       
                        
Intrinsic Value (IV):                   ₹663.46       
                        
Margin of Safety IV:                   ₹497.59       
                        
What Percentage of IV comes from                   73%      
the Terminal Value:                        
                        

SO APPLY AND BUY ON LISTING IF IT LIST BELOW AROUND 400 FOR BUMPER LONG RUN
BTW I HAVE NOT TAKEN 518 CRS ADDTIONAL PROFIT FROM EXTRA ORDINARY BUSINESS ( IN THIS CASE SALE OF ASSETS)

avatar
188.8. Raghu  Jun 28, 2017 11:22:14 PM IST I Like It. | Report Abuse
Thanks Septa sir. Detailed analysis and putting confidence in this IPO. I will go ahead and apply.
avatar
188.9. KRB  Jun 29, 2017 12:26:07 AM IST I Like It. | Report Abuse
Nice analysis...👍👍

I can''t comment on target of 500 but yes, this is better NBFC than other listed peer.

Also NBFC are in bull market of their own like pharma was 2/3 years ago.

I think valuation are beyond fundamentals and sooner or later this has to be adjusted.

Request you to try CANSLIM method (William Neil) along with DCF.
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187. Kartikdevd  Jun 28, 2017 11:33:55 PM IST I Like It. 1 | Report Abuse Reply
Surprise to see no QIB and negligible NII on day one. GTPL had at least opened 0.69 QIB interest on day one. Hope RBI don''t messed up AU. Otherwise it will be S Chand.
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186. KCPAL  Jun 28, 2017 7:37:00 PM IST I Like It. 1 | Report Abuse Reply
Very interesting, Mr Gamble has been posted some message on behalf of AU Financier on 26th June and that message is repeatedly showing on the top of the list by the Admin. Be careful, "dal main kuch Kala Lagta hai"
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186.1. Hellrazor  Jun 28, 2017 9:37:28 PM IST I Like It. | Report Abuse
If someone adds comment recently on parent messages then that parent message shows up on top .
This is new feature
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186.2. KCPAL  Jun 28, 2017 11:03:24 PM IST I Like It. | Report Abuse
Take care of your hard earned money. Do not believe the manipulated facts of some agents
Good portfolio stocks are like Coal India, Hudco etc.
avatar
185. rsk  Jun 28, 2017 9:50:28 PM IST I Like It. | Report Abuse Reply
For retail, Some 4, 47, 500 applications will get atleast one lot (41 shares), (unless there are 10 lac applications, in that case it will be 1 out 2).
Soch Kar invest keejiye.

Some ppl seem to have vested interest, so keep pushing data/statistics.
Some one once said, Statistics is like a swimming costume, it titillates you but hides the real stuff.
avatar
184. Chem cho  Jun 28, 2017 9:29:40 PM IST I Like It. 3 | Report Abuse Reply
IPO Guru IPO Guru (1200+ Posts, 200+ Likes)
Au Financiers ipo is an big issue of Rs 1912 Cr issue
Market players easily absorb issues below Rs 1000 and you get good listing gains up to 30 % above , unless there is God father to this issue you will find selling pressure even though it lists at premium
It is an good stock and worth applying I am in favour of this stock but as you see banking stock went down last three session
if you are getting it IPO price hold on and have a strict stop loss of Rs 375
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183. Raj Tilak  Jun 28, 2017 9:05:10 PM IST I Like It. 1 | Report Abuse Reply
30%gain karega don''t worry
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182. Prashant k  Jun 28, 2017 8:34:10 PM IST I Like It. 1 | Report Abuse Reply
Why premium fall down suddenly?
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182.1. Rajkumar Bhuj  Jun 28, 2017 8:43:06 PM IST I Like It. | Report Abuse
It''s going towards its fair value :D
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181. KCPAL  Jun 28, 2017 8:42:16 PM IST I Like It. | Report Abuse Reply
Did you notice, company financial details were not published earlier, today only Chittorgarh published, after poor response from investors on day one. Do you believe such data? Some agent are here of the company posting on behalf of the company. Be carefull, Mr Gamble gave financial details of AU Financier''s subsidiary company AU Banking not AU Financier. It seems a company of Mrs and Mr Agarwal Family and taking the advantage of market condition. Be careful.
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180. MINTO  Jun 28, 2017 8:30:25 PM IST I Like It. | Report Abuse Reply
Yes septa sir,
We are waiting your valuable comments.
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179. Better R  Jun 28, 2017 8:24:27 PM IST I Like It. | Report Abuse Reply
HDFC bank not showing AUBANK ipo. What is the problem?
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178. OddEven  Jun 28, 2017 8:04:00 PM IST I Like It. | Report Abuse Reply
Septa Sir...
Awaiting your valuable suggestion on this IPO.
Pls advise.


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177. JagoGrahak  Jun 28, 2017 8:01:43 PM IST I Like It. 1 | Report Abuse Reply
AuFinance
GMP: 66-68
Kostak: 550

Cracked vertically...
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176. Ranga  Jun 28, 2017 7:50:24 PM IST I Like It. | Report Abuse Reply
Investors are waiting for unblocking their Absa. Then pump in here.
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175. babloo  Jun 28, 2017 7:38:24 PM IST I Like It. 1 | Report Abuse Reply
QIB subscription need to be tracked....Today 0
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174. gamble  Jun 26, 2017 3:17:29 PM IST I Like It. 17 | Report Abuse Reply
IPO Guru IPO Guru (1100+ Posts, 1000+ Likes)
.......Au small finance bank.....


@358...... PE 30,,, P/BV 5.09X


In 2017 total PBT is 504.5cr(excluding exceptional income)
In 1st half H1 PBT 264.2 cr
And H2 PBT 240.3 so.. .despite of slow down/demonetisation in NBFC space'' this didn''t affect.
because of good diversified Business and strong catch on rural area. And mainly focused on mid-small class community.

....in case of ujjivan and equitas H2 PAT decreased by 56 and 52% respectively.


.....peers......

Comparision of last yr (from 16 to 17)PAT/EPS growth

...,................PAT.............EPS

Ujjivan .......16%..............(-1.5%)
Equitas........(-4%)............(-2%)
Bajaj fin.. .....44%..............37%

AU SFB.. ... ...34%.............28%

RBL, indusind not much comparable.


Hence it is clearly seen that ujjivan, equitas failed in performing better last yr so p/bv near 2.3 is justified

....but see bajaj fin a golden share, trading P/BV 8X backed by extraordinary performance.

.......In coming yrs also AUSFC poised to grow substantially. ......

.....As of now AUSFB conducted operations through 269 branches, 121 asset centers, one central processing center and 10 offices. In addition, AUSFB plans to set up an additional 162 branches and seven central processing centers during the financial year 2018

i. e

..................................2017.........2016

Capital work
Under progress .........160cr......0.4cr

Intangible assest
Under devlop.. .............80 cr.......-......

Current Assest............4367cr.....2372cr

Current liability. ..........2760cr.. ..2372cr

Cash&BB......................624 cr.. .....123 cr


So it is justified that AU may trade near 5.7-6.2x P/BV .

i. e 70.34*5.7==400(PE 33.5)
70.34*6.2===436(PE 36.4)

LISTING Expected (imo) ::: 420 ( near 6X) or premium of 62 RS(17%)


Hugh 18347760(35%) share available for RII..and for 1 app 41 share
Thus. ...447506 forms req for 1x

So RII may subscribe by <= 2/2.2X appwise

Out of 2 ...1 will get alloted*.

Kostak rate= 750-850 last seen

..........If u sell in kostak say at 800 then indirectly u sold at only 39 premium :-(
.Not fair but yes u can always choose that option for no risk in any adverse conditions.


Concl.....

Subscribe for medIum term as well as listing gain.cause buy after suitable/fair valuation may never come :-)))
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174.7. Hellrazor  Jun 28, 2017 3:31:45 PM IST I Like It. | Report Abuse
Ur analysis make sense Gamble ji, Does failing market going to affect this ipo?
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174.8. gamble  Jun 28, 2017 6:24:58 PM IST I Like It. 3 | Report Abuse
IPO Guru IPO Guru (1100+ Posts, 1000+ Likes)
Any big dips like 200/300 points in nifty may affect but not likely to happen anytime soon imo.if not comfortable then sell in kostak and pocket whatever u get...!!
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173. IPO Bhavnagar  Jun 28, 2017 6:07:41 PM IST I Like It. 1 | Report Abuse Reply
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Expecting CDSL funds to be released by tomorrow.. So, on last day we will see a big jump in Retail Subscription. Expecting 3x by No of Applications.
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172. a.h.mithvani  Jun 28, 2017 6:06:25 PM IST I Like It. | Report Abuse Reply
AU SMALL FINANCE BANK LTD
Last updated on
28 Jun 2017 | 05:00:00 PM
Sr.No.      Category      No.of shares offered / reserved      No. of shares bid for      No. of times of total meant for the category
1      Qualified Institutional Buyers (QIBs)      1,04,84,434      -      0.0000
1(a)      Foreign Institutional Investors (FIIs)      -      -      
1(b)      Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)      -      -      
1(c)      Mutual Funds      -      -      
1(D)      Others      -      -      
2      Non Institutional Investors      78,63,326      5,01,348      0.0638
2(a)      Corporates      -      2,788      
2(b)      Individuals (Other than RIIs)      -      4,98,560      
2(c)      Others      -      -      
3      Retail Individual Investors (RIIs)      1,83,47,760      34,32,848      0.1871
3(a)      Cut Off      -      32,92,997      
3(b)      Price Bids      -      1,39,851      
4      Employee Reserved      10,00,000      1,32,922      0.1329
4(a)      Employee (Cut off)      -      1,30,708      
4(b)      Employee (Price)      -      2,214      
5      Reservation PortionShareholder      -      -      
5(a)      RPS (Cut off)      -      -      
5(b)      RPS (Price)      -      -      
Total      3,76,95,520      40,67,118      0.1079
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171. Gagan Agrawal  Jun 28, 2017 6:01:42 PM IST I Like It. | Report Abuse Reply
Do not forget that people''s money is still stucked in CDSL..
There will be a good subscription and listing!!
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170. Rajkumar Bhuj  Jun 28, 2017 6:01:36 PM IST I Like It. | Report Abuse Reply
AU gmp further cracking... May be punters are being cautious

Kostak - 625
GMP - 74 - 76


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169. djpv  Jun 28, 2017 6:00:29 PM IST I Like It. | Report Abuse Reply
IPO-Ready AU Small Finance Bank On RBI’s Caution List
A day ahead of its IPO, AU Small Finance Bank has been placed under the caution list by the Reserve Bank of India to monitor the foreign shareholding of the company which is hovering around the permissible limit of 49 percent.
AU Small Finance Bank''s Rs 1,912 crore initial public offering (IPO), at a price band of Rs 355-358 per share, opens on Wednesday.
The small finance bank has already passed resolutions for increasing foreign institutional investors (FIIs) or foreign portfolio investors (FPIs) limit under portfolio investment scheme up to 49 percent of its paid up capital. FIIs, FPIs, global depository receipts, American Depository Receipts, FDI, NRIs, persons of Indian Origin (PIOs) are all the sources – who collectively are not allowed to hold over 49 percent in small finance banks in India.
The limit can be enhanced only after prior approval from the RBI.

SUMMARY
AU Small Finance Bank placed under RBI’s caution list a day ahead of its IPO.
RBI to monitor the foreign shareholding of the company which is hovering around the permissible limit of 49 percent.
The limit can be enhanced only after prior approval from the RBI.
The Rs 1,912 crore IPO, at a price band of Rs 355-358 per share, opens on Wednesday.
A day ahead of its IPO, AU Small Finance Bank has been placed under the caution list by the Reserve Bank of India to monitor the foreign shareholding of the company which is hovering around the permissible limit of 49 percent.
AU Small Finance Bank''s Rs 1,912 crore initial public offering (IPO), at a price band of Rs 355-358 per share, opens on Wednesday.
The small finance bank has already passed resolutions for increasing foreign institutional investors (FIIs) or foreign portfolio investors (FPIs) limit under portfolio investment scheme up to 49 percent of its paid up capital. FIIs, FPIs, global depository receipts, American Depository Receipts, FDI, NRIs, persons of Indian Origin (PIOs) are all the sources – who collectively are not allowed to hold over 49 percent in small finance banks in India.
The limit can be enhanced only after prior approval from the RBI.
In a notification on Wednesday, RBI said the total foreign shareholding through all sources in the company has reached the trigger limit. "Hence purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank," it said in a notification.
As per the extant rules, foreign shareholding in small finance banks is governed under foreign direct investment (FDI) policy for private sector banks. The present rule allows an aggregate foreign investment of up to 49 percent under automatic route and it can be enhanced up to 74 percent through an approval process.
The Jaipur-based AU Small Finance Bank was a non-banking finance company earlier -- AU Financiers India. It was one among the 10 entities that were given SFB license by RBI in June 2015. It started operations as an SFB in April this year.

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