Jana Small Finance Bank IPO ends with decent subscription

Published on Feb 12, 2024 12:20

The initial public offer (IPO) of Jana Small Finance Bank received 18,71,96,940 bids for shares as against 1,01,16,284 shares on offer. The issue was subscribed 18.50 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 38.75 times. The Non Institutional Investors (NIIs) category was subscribed 25.05 times. The Retail Individual Investors (RIIs) category was subscribed 5.46 times.

The issue opened for bidding on 7 February 2024 and it closed on 9 February 2024. The price band of the IPO was fixed at Rs 393-414 per share.

The offer comprised of fresh issue of equity shares aggregating up to Rs 462 crore and offer for sale of up to 26,08,629 equity shares.

The promoter, Jana Holdings, has not participated in the OFS. The promoter shareholding would decline to 22.5% post IPO from 25.2% pre-IPO.

The bank proposed to utilize the net proceeds from the offer towards augmenting Bank�s Tier I capital base to meet future capital requirements.

The listing of the bank is also in line with the terms of the RBI SFB licensing guidelines, requiring the bank to list its equity shares on the stock exchanges within three years from reaching network of Rs 500 crore.

Ahead of the IPO, Jana Small Finance Bank on Tuesday, 6 February 2024 raised Rs 166.94 crore from anchor investors. The board allotted 40.32 lakh shares at Rs 414 each to 17 anchor investors.

Incorporated in July 2006, Jana SFB is a non-banking finance company primarily engaged in providing MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans. Jana SFB offers various unsecured loan products, including individual and micro business loans, agricultural and allied loans, and group loans.

Jana SFB is the fourth largest Small Finance Bank in terms of AUM as well as in terms of deposit size end September 2023. The bank has 771 banking outlets, including 278 banking outlets in unbanked rural centers, in 22 states and two union territories. The bank has served nearly 12 million customers since 2008, including 4.87 million active customers end-September 2023.

The firm reported a net profit of Rs 213.22 crore and net total income of Rs 1,339.26 crore for the six months ended on 30 September 2023.