AU Small Bank is having a pretty volatile run on the bourses today. From its close of Rs.397.90 yesterday, it opened much higher at Rs.415, up over 4% but from there, it slipped down to 386.85 and currently remains in the red.

The spike up in the price earlier was on account of Govt of Singapore buying 19.70 lakh shares at Rs.414.60/share on the NSE, via bulk deals yesterday. Prior to this, on 15th May, Sunil Bharti Mittal-owned Bharti (SBM) Holdings  bought over 24 lakh shares at the same price of Rs.414.60/share.

This buying on 15th and 18th is after the promoters sold stake. Mr. Sanjay Agarwal, Managing Director and CEO of the Bank informed that Promoters & Promoter Group sold 27,19,186 and 25,00,000 Equity Shares of AU Small Finance Bank Limited on 15th May-2020 & 18th May-2020 respectively to deleverage & to make full repayment of loans against the security of Equity Shares and Promoters have also committed part of the consideration for COVID19 related support initiatives.

The debt – Agarwal and his family’s loan against shares amounting to around Rs. 165 crore.

Before the aforesaid sale transaction, the Shareholding of Promoters and Promoter group was 30.84% and after selling the above 52,19,186 equity shares, their shareholding has slightly come down to 29.13%. Out of aforesaid 29.13% unencumbered shareholding, 26% is under lock-in till Apil’2022 as per regulatory stipulation