Jana Small Finance Bank Fizzles on Debut: Lists 4% Below Issue Price

14 Feb 2024 , 10:15 AM

Jana Small Finance Bank made its market debut with a subdued performance, listing at a 4% discount to the IPO price on February 14. The stock opened at ₹396 on the NSE, lower than the issue price of ₹414. 

The ₹570-Crore offer, comprising a fresh issue of 1.11 Crore shares worth ₹462 Crore and an offer for sale of 26.08 lakh shares worth ₹108 Crore, witnessed strong demand with a subscription rate of 19.8 times.

Several selling shareholders participated in the IPO, including Hero Enterprise Partner Ventures, Client Rosehill, CVCIGP II Employee Rosehill, and Growth Partnership II Ajay Tandon Co-Investment Trust. The price band for the IPO was set at ₹393-414 per share.

The bank intends to utilize the proceeds from the fresh issue to strengthen its Tier-1 capital base. Jana Small Finance Bank holds the position of the fourth-largest small finance bank based on assets under management (AUM) and deposit size. As of September 30, 2023, the bank boasted 771 banking outlets.