Jana Small Finance Bank’s market entry was less vibrant than expected, opening at a 4% discount from its IPO price of Rs 414, starting at Rs 396 on the NSE on February 14, contrary to the anticipated 7% premium.
The bank’s Rs 570-crore IPO included a fresh issuance of 1.11 crore shares valued at Rs 462 crore and a sale offer (OFS) of 26.08 lakh shares worth Rs 108 crore, attracting a subscription rate of 19.8 times. Notable sellers in the IPO were Hero Enterprise Partner Ventures, Client Rosehill, CVCIGP II Employee Rosehill, and Growth Partnership II Ajay Tandon Co-Investment Trust.
With a set price range of Rs 393-414 per share, the bank aims to strengthen its Tier-1 capital with the proceeds from the fresh issue. As of September 30, 2023, Jana SFB, ranking as the fourth-largest in terms of AUM and deposits, operated 771 banking outlets.
On the BSE, Jana SFB’s stock also initiated trading at Rs 396, beneath the IPO price, bringing the NBFC’s market capitalization down to Rs 4,141.77 crore. The trading session saw 0.27 lakh shares of Jana SFB being traded, generating a turnover of Rs 1.06 crore on the BSE, and it mirrored the opening price on the NSE as well.
The IPO saw substantial interest across investor categories, with the QIBs portion subscribed 38.75 times, NIIs bids reaching 25.05 times their quota, and retail individual investors showing a participation rate of 5.46 times.