Jana Small Finance Bank Limited IPO: An Overview and Corporate Insight
Established in July 2006, Jana Small Finance Bank Limited operates as a non-banking finance company with a focus on providing a range of financial services. These services primarily include MSME loans, affordable housing loans, term loans to NBFCs, loans against fixed deposits, two-wheeler loans, and gold loans.
Jana SFB offers an array of unsecured loan products catering to individual and micro-business needs, agricultural and allied sectors, and group loans. The bank categorises its loans into three main types: individual loans for home improvement or repair and individual loans for school fees.
Grey Market Premium Analysis and IPO Timelines – Jana Small Finance Bank IPO
|
Date |
GMP |
| February 06 | ₹80 |
| February 05 | ₹80 |
| February 04 | ₹108 |
| February 03 | ₹108 |
With a price band of ₹414.00, the estimated listing price for Jana Small Finance Bank’s IPO is ₹494.00, calculated as the cap price plus today’s Grey Market Premium (GMP). This translates to an expected percentage gain of 19.32% per share.
Pricing Details and Lot Size – Jana Small Finance Bank Limited IPO
The price band for Jana Small Finance Bank IPO is ₹393 to ₹414 per share.
Book-Running Lead Managers and Registrar – Jana Small Finance Bank Limited IPO
Axis Capital Limited, ICICI Securities Limited and SBI Capital Markets Limited are the joint Book Running Lead Managers (BRLMs) to the issue while KFin Technologies Limited is the registrar.
Offer for Sale and IPO Size Breakdown – Jana Small Finance Bank Limited IPO
Jana Small Finance Bank’s IPO is a book-built issue of Rs 570.00 crores, comprising a fresh issue of 1.12 crore shares worth Rs 462.00 crores and an offer for sale of 0.26 crore shares worth Rs 108.00 crores.
IPO Price Band and Lot Size –Jana Small Finance Bank Limited IPO
The IPO price band is set at ₹393 to ₹414 per share, with a minimum lot size of 36 shares. Retail investors need a minimum investment of ₹14,904. For sNII, the minimum lot size investment is 14 lots (504 shares), amounting to ₹208,656, and for bNII, it is 68 lots (2,448 shares), amounting to ₹1,013,472.
IPO Timelines at a Glance – Jana Small Finance Bank Limited IPO
| Event | Date |
| IPO Opening Date | February 7,2024 |
| IPO Closing Date | February 9, 2024 |
| IPO Allotment Date | February 12, 2024 |
| Initiation of Refunds | February 13, 2024 |
| Credit of Shares to Demat | February 13, 2024 |
| IPO Listing Date | February 14, 2024 |
Utilisation of Fresh Issuance and Technological Advancements – Jana Small Finance Bank Limited IPO
The bank intends to utilize the Net Proceeds from the Fresh Issue to bolster its Tier-1 capital base, ensuring compliance with future capital requirements, and to cover expenses related to the Offer. Additionally, listing the Equity Shares on the Stock Exchanges is expected to provide various benefits to the bank.
Conclusion
Ranked as the fourth largest financial service provider in India, this Small Finance Bank (SFB) has demonstrated notable growth in its performance. Despite experiencing a margin setback for FY22, consistent with industry trends during the pandemic, its annualized FY24 earnings suggest a reasonably priced issue. Investors looking for medium to long-term rewards may consider investing in this SFB.
Frequently Asked Questions (FAQ) – Jana Small Finance Bank Limited IPO
What does Jana Small Finance Bank Limited Ltd. specialise in?
Jana Small Finance Bank Limited operates as a non-banking finance company with a focus on providing a range of financial services.
What is the primary purpose of Jana Small Finance Bank Limited’s IPO?
The bank intends to utilize the Net Proceeds from the Fresh Issue to bolster its Tier-1 capital base, ensuring compliance with future capital requirements, and to cover expenses related to the Offer. Additionally, listing the Equity Shares on the Stock Exchanges is expected to provide various benefits to the bank..
Who are the lead managers for Jana Small Finance Bank Limited’s IPO?
Axis Capital Limited, ICICI Securities Limited and SBI Capital Markets Limited are the joint Book Running Lead Managers (BRLMs) to the issue.
How is the IPO structured in terms of new issuance and offer for sale (OFS)?
Jana Small Finance Bank’s IPO is a book-built issue of Rs 570.00 crores, comprising a fresh issue of 1.12 crore shares worth Rs 462.00 crores and an offer for sale of 0.26 crore shares worth Rs 108.00 crores.
What is the lot size and minimum investment for retail investors in Jana Small Finance Bank Limited IPO?
Retail investors need a minimum investment of ₹14,904. For sNII, the minimum lot size investment is 14 lots (504 shares), amounting to ₹208,656, and for bNII, it is 68 lots (2,448 shares), amounting to ₹1,013,472.
What is the price band for Jana Small Finance Bank Limited IPO?
The price band for Jana Small Finance Bank IPO is ₹393 to ₹414 per share.
How has the Grey Market Premium (GMP) trended for Jana Small Finance Bank Limited IPO?
The GMP for today is Rs.80.
When does the IPO open and close for subscription?
Jana Small Finance Bank IPO will open for subscription on February 7 and close on February 9.
When is the allotment date for Jana Small Finance Bank Limited IPO?
The finalisation of the basis of allotment for Jana Small Finance Bank IPO will be done on February 12 2024, and the allotted shares will be credited to investors’ demat accounts by February 13.
When is Jana Small Finance Bank Limited expected to be listed on the stock exchanges?
The anticipated listing date for Jana Small Finance Bank Limited IPO is February 14 2024 on the BSE and NSE mainboards.
