Jana Small Finance Bank IPO opens for subscription: Price band to offer size, check key details

The initial public offering (IPO) of Jana Small Finance Bank Limited is now open for subscription. The subscription period is open for three days from February 7 to February 9.

The Bengaluru-based bank has attracted sharp interest from marquee institutional investors. Here, we have compiled everything, from price band to grey market premium (GMP), you need to know about this upcoming IPO before you make a move.

So, read on to carefully weigh the risks and rewards before applying for the Jana SFB shares.

Institutional investment prelude

On February 6, a day before the opening of the public issue, Jana Small Finance Bank mobilised ₹166.95 crore from marquee institutional investors. This included the allocation of 40,32,588 equity shares to anchor investors at a price of ₹414 per piece. Notable investors like East Bridge Capital Master Fund and SBI Life Insurance Company were among the participants.

Price band

The bank has fixed the price band for the issue at ₹393 to ₹414 per share.

What’s on Offer?

The bank aims to raise ₹570 crore through this offering, comprising a fresh issuance of 1.12 crore equity shares worth ₹462 crore and an offer-for-sale of 26,08,629 equity shares worth ₹108 crore by six investors.

Jana SFB plans to leverage the net proceeds from the fresh issue to augment its Tier-1 capital base to meet future capital requirements. Additionally, the funds raised will cover expenses related to the offer. The bank anticipates significant advantages from the listing of the equity shares on the bourses.

Lot size

For retail investors, the minimum bid size is 36 equity shares, with multiples of 36 shares thereafter. The minimum application size will be ₹14,904 for 36 shares. A retail investor can apply for shares worth a maximum of ₹2 lakh.

Jana SFB IPO GMP

The grey market premium for Jana SFB IPO on the opening day of the subscription is ₹66 per share, according to reports. This indicates Jana SFB shares are trading at nearly 16% premium at ₹480 per piece in the grey market on February 7.

About Jana SFB

Established in July 2006, Jana Small Finance Bank Limited is a non-banking finance company mainly engaged in providing various financial services, including MSME loans, affordable housing loans, term loans, two-wheeler loans and gold loans. The bank also offers a range of unsecured loan products.

For the year ended March 2023, the bank reported total revenue of ₹5,856 crore, registering steady year-on-year growth. Axis Capital Limited, ICICI Securities Limited, and SBI Capital Markets Limited are the book-running lead managers for the IPO, while Kfin Technologies Limited is the registrar.

Mark your calendar

Jana SFB IPO share allotment is expected to be finalised on February 12. If all goes well, the shares of Jana SFB are expected to be listed on both BSE and NSE on February 14. Post this, investors can trade the bank's shares in the secondary market.