AU Small Bank to buy Fincare in all-stock deal

FILE PHOTO: A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas/File Photo

MUMBAI: Indian lender AU Small Finance Bank says it will buy peer Fincare Small Finance Bank in an all-stock deal worth 44.11 billion rupees (US$529.8mil), as it seeks to expand its presence in southern India and enter the microfinance space.

Shareholders of Fincare Small Finance Bank, which filed initial public offering (IPO) papers in May, will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares of the former.