Is AU Small Finance Bank being aggressive?

AU Small Finance Bank recently announced the acquisition of Fincare SFB in an all-stock deal at a valuation of Rs 5,100 crore. The bank's strategic move to expand its presence in southern India and venture into microfinance lending may be a sound strategy. However, the question is whether the acquisition is made at a fair price or if management has overpaid for it. The acquisition of Fincare SFB by AU Small Finance Bank has been executed at a valuation of Rs 5,100 crore! While the bank's move to strategically expand its presence in South India and to venture into microfinance lending may be a sound strategy, is it fairly valued or overpriced ? We decided to explore. Price and valuation Let's start with the numbers. Valuation Companies P/B P/E Equitas SFB 2 14.1 Ujjivan SFB 2.6 8.1 Uttkarsh SFB 2.7 11 Suryoday SFB 1 14.1 Average 2.1 11.9 Median