Pre-IPO Buzz: Jana Small Finance Bank Pockets Rs 113 Crore

23 Jan 2024 , 12:23 PM

In a pre-IPO placement, multiple investors contributed Rs 113.15 crore to Bengaluru-based Jana Small Finance Bank.

The SFB, supported by TPG Asia and Amansa Holdings, informed investors that it has completed a pre-IPO placement of approximately 1.21 crore compulsorily convertible preference shares (CCPS) at an issue price of Rs 10 per share, for a total of Rs 12.16 crore.

Additionally, it sold about 24.4 lakh equity shares through private placement for a total of Rs 101 crore, with a price per share of Rs 414.

As the largest investors, SBI General Insurance Company, Kotak Mahindra Life Insurance Company, and Ananta Capital Ventures Fund 1 acquired shares valued at Rs 25 crore, Rs 20 crore, and Rs 15 crore, in that order.

‘The pre-IPO placement has been undertaken pursuant to the approval of the board of directors on August 11, 2023, and January 15, 2024, and shareholders on September 4, 2023 and January 18, 2024,’ said Jana SFB.

A corporation sells a sizable portion of its shares privately in a pre-IPO offer before going public through the issuance. The placement serves as a means for the business to generate capital and reduce IPO risks, even though the buyer receives the shares at a discount from the IPO price.

Prior to submitting the red herring prospectus for the initial public offering to the Registrar of Companies (ROC), the CCPS will be converted into 4,01,149 equity shares.

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