Jana Small Finance Bank IPO Opens At ₹393 To ₹414 Per Share Price

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Jana Small Finance Bank’s IPO has hit the market today. The initial public offering (IPO) is set to be open until February 9th, with a price range of ₹393 to ₹414 for each share. The bank plans to make its stock market debut on the BSE and NSE.

The goal of this IPO is to raise ₹570 crore. It’s divided into two parts: a fresh issue of equity shares aiming for ₹462 crore and an offer for sale (OFS) targeting ₹108 crore. 

For those interested in investing, the minimum number of shares you can buy is 36, which means you need at least ₹14,904 to participate.

Investors who subscribe to the IPO can expect the allotment of shares around February 12, with refunds and the transfer of shares to their demat accounts likely happening the next day. The expected date for the shares to start trading on the BSE and NSE is February 14.

Before the IPO opened, Jana Small Finance Bank secured ₹166.95 crore from 17 anchor investors on January 6. 

They priced each share at ₹414, the upper end of the IPO price band. Some of the major investors included names like SBI Life Insurance Company and East Bridge Capital Master Fund.

The IPO is being managed by Axis Capital, ICICI Securities, and SBI Capital Markets, while Kfin Technologies is taking care of the registration process.

In terms of market expectations, the IPO seems promising. The grey market premium (GMP) for the bank’s shares is ₹66, which means it’s trading at around ₹480 in the grey market, 15.94% higher than the IPO price.

Also Read: Foreign Investors Pour $20 Billion Into India’s Stock Market In 2023

For those wondering whether to invest, it’s worth noting that Jana Small Finance Bank is the fourth largest in its sector by asset management and deposit size as of September 30, 2023. 

It’s known for its digital banking services and has over 16 years of experience serving customers who often don’t have easy access to banking. 

According to some industry experts, the IPO is fairly priced, and they recommend subscribing to it. The firm notes that the bank’s market cap post-IPO would be about ₹43,300 million with a return on net worth of 14.40%.