Kolkata: Two small finance banks — Capital and Jana — will compete with each other to attract investors as both their initial public offers are set to hit the market on February 7.
Capital Small Finance Bank has fixed the price band for its IPO at Rs 445 to Rs 468 per share, the bank announced in a press statement. Jana Small Finance Bank has set its price band at Rs 393 to Rs 414 per share.
Capital will look to raise Rs 450 crore through a fresh issue of shares, while its existing shareholders such as Oman India Joint Investment Fund, PI Ventures and Amicus Capital will offer another 1.56 million shares for sale.
Jana’s IPO comprises a fresh share issue for Rs 462 crore after adjusting for a pre-IPO placement, and an offer for sale of nearly 2.61 million shares by existing investors.
Jalandhar-headquartered Capital, which is the first one to start operating in the small finance bank space, received market regulator Securities & Exchange Board of India’s permission for IPO last month while Jana got it last November.
Jana is a microfinance company turned bank, while Capital was the largest local area bank before converting itself into an SFB in 2016. Capital’s loan portfolio is almost entirely secured, as it has no microfinance legacy.