India-based Au Financiers (India) Ltd. obtained approval from the Securities and Exchange Board of India to launch its proposed IPO in the first quarter of the 2017-2018 fiscal year, Mint reported March 28, citing "two people aware of the development."

The company is planning to sell 53,422,169 shares, according to a draft red herring prospectus. The IPO will be a pure offer for sale, the sources said.

ICICI Securities Ltd., HDFC Bank Ltd., Motilal Oswal Investment Advisors Pvt. Ltd. and Citigroup Global Markets India Pvt. Ltd. are the lead managers for the IPO.

Au Financiers will be the third small finance bank to list after Equitas Small Finance Bank and Ujjivan Small Finance Bank were listed in 2016. The company is the only nonbanking finance company among the 10 businesses to receive in-principle approval to set up small finance banks.

In December 2016, Au Financiers received a final license from the Reserve Bank of India to start a small finance bank. The company may commence banking operations by mid-April.