The shares of Jana Small Finance Bank debuted with a premium/discount of xx% on the exchanges on Wednesday. The stock listed at Rs xx on NSE/BSE as against an issue price of Rs 414.
Ahead of the listing, the company’s shares traded with a premium of Rs 30 in the unlisted market.
The IPO, which comprised fresh equity worth Rs 462 crore and an offer for sale (OFS) of 26.08 lakh shares, received healthy response from investors as the issue was booked 18.5 times at close.
Most analysts were positive on the IPO over the company’s strengths, which include its wide distribution network, integrated risk management approach and digitised operations.
Net Proceeds are proposed to be utilised towards augmentation of Bank’s Tier – 1 capital base to meet bank’s future capital requirements such as organic growth and expansion and to comply with the regulatory requirements for enhanced capital base.
Jana SFB is the fourth largest small finance bank in terms of AUM. As of September 2023, it had 771 banking outlets, including 278 banking outlets in unbanked rural centres. The company boasts of marquee investors including TPG, HarbourVest Group, Amansa Capital, Morgan Stanley and Hero Ventures.
Its primary secured loan products are secured business loans, micro loans against property, MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans.
The Bank’s operations are digitalised and majority services are available online to customers with integrated risk and governance framework.
The small banking lender’s gross advances increased from Rs 11,838 crore in FY21 to Rs 18,001 crore in FY23, representing a CAGR of 23.31%, and further increased to Rs 21,347, as of September 2023.
For the period ended September 2023, total income increased 31% to Rs 2,215 crore, while profit more than doubled to Rs 213 crore.
Axis Capital, ICICI Securities and SBI Capital Markets acted as the book running lead managers to the issue.
