GEPL Capital has recommended to 'Subscribe' the initial public offer (IPO) of AU Small Finance Bank.

Au Financiers (India) based in Jaipur, Rajasthan was incorporated in 1996, and was operating as a 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 operates in 3 business lines namely Vehicle finance, Micro, small and medium enterprises (MSMEs)
loans, Small and medium enterprises (SMEs) loans.

Commenting on the AU Small Finance Bank IPO, GEPL Capital said, ''AU Small Finance Bank stands to gain from operating leverage. At a P/B of 5.09xs of FY17 BV. We believe that AU Small Finance Bank. demands a discount to its domestic peers. We assign a Subscribe rating to the IPO.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.