Private Equity

Liquidity Events

Fincare SFB to merge with AU Small Finance Bank

BSE Announcement   Businessline  

Fincare Small Finance Bank is to merge with publicly listed AU Small Finance Bank. The share exchange ratio for the amalgamation will be 579 equity shares (FV INR 10 each) of AU SFB for every 2,000 equity shares (FV INR 10 each) of Fincare SFB. At these exchange ratios, Fincare SFB is valued at around 3x price to book based on Q2 FY24 financials. Fincare Small Finance Bank has Total Assets of INR 12,467 crore, net Worth of INR 1,314 crore, turnover of INR 1,970 crore, profit after tax of INR 104 crore for the year ended FY23 Fincare SFB will give AU SFB the access to MFI loans and better penetration into the southern markets.

From the Venture Intelligence PE-VC Deal Database: In May-21, Motilal Oswal Private Equity picked up a minority stake in Fincare Small Finance Bank for USD 25 million (about INR185 Cr) through a secondary acquisition. The deal provided a partial exit to True North Fund V LLP. Other investors in the SFB include Tata Opportunities Fund, LeapFrog and TA Associates.