NEW DELHI: Shares of AU Small Finance Bank went up 10 per cent on Friday amid reports that Warburg Pincus has sold 5 per cent stake in the company to a marquee investor in a block deal.Warburg Pincus was required to bring down its stake in the company below 10 per cent, in line with RBI regulations.
According to Times Now, Axis Bank was the banker of the block deal.
The stock rose 10.47 per cent to hit a high of Rs 711 on the BSE.MD and CEO Sanjay Agarwal confirmed the block deal, but was tight-lipped on details as "it has nothing do with promoters".
"My own stake (is) intact, but Warburg has to cut its stake below 10 per cent as per RBI regulations and that deadline was around September-end," the CEO said.Agarwal is unsure whether Warburg Pincus has sold his 5 per cent holding to "maybe one of the most, very well-known investors in the field"."There were a lot many people who were in the race to pick this stake," he told ETNow.