Jana Small Finance Bank IPO: Shares drop up to 5% after weak market debut

Jana Small Finance Bank shares dropped up to 5% after listing at a discount of more than 4% to the IPO issue price on Wednesday, February 14.

The stock made a weak market debut with listing at ₹396 apiece on BSE, reflecting a discount of 4.35% as against its issue price of ₹414 per share. On the National Stock Exchange (NSE) the shares opened at ₹396 apiece. The SFB’s market capitalisation slipped to ₹2,166 crore.

More than 30 lakh shares changed hands on NSE in morning deals while 1.85 lakh shares were traded on BSE.

After listing at a discounted price, the shares of Jana Small Finance Bank dropped further, sliding more than 5% in morning trade on Wednesday. The stock was trading 4.73% lower at ₹394.4 apiece on BSE at 10:33AM. Jana Small Finance Bank shares traded at ₹392.6 apiece, down 5.17%, on NSE.

Jana Small Finance Bank IPO: Issue size, subscription, price band and lot size

The ₹570 crore Jana SFB IPO comprised fresh equity worth ₹462 crore and an offer for sale (OFS) of 26.08 lakh shares amounting to ₹108 crore.

The IPO received a strong response from the investors as the issue was subscribed 18.5 times. The IPO was open from subscription from February 7 to February 9. The Jana SFB IPO share allotment was finalised on February 12.

On the final day of the bidding, the IPO received biddings for a total of 18,71,96,940 equity shares.

The Jana SFB IPO price band was fixed at ₹393 to ₹414 per share. The Jana SFB IPO lot size was 36 shares and in multiples thereafter, meaning the bidders were allowed to apply for at least 36 shares with a minimum investment of ₹14,904. Prior to the IPO, the bank raised ₹167 crore from anchor investors.

The bank aims to utilise the funds from the IPO to bolster its core capital and ensure it meets future capital requirements and boosts its capital adequacy ratio.

About Jana SFB

Bangalore-based Jana Small Finance Bank stands as the fourth largest small finance bank in terms of Assets Under Management (AUM). The RBI-regulated bank has 771 banking outlets, including a significant presence in unbanked rural centres.

Founded in July 2006, Jana Small Finance Bank Limited operates as a non-banking finance company (NBFC) mainly specialising in delivering various financial services. Its services include MSME loans, affordable housing loans, term loans, two-wheeler loans, and gold loans, alongside an array of unsecured loan products.

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