Jana Small Finance Bank Marks IPO Debut at 4% Discount, Faces Stock Dip

14 Feb 2024 , 03:56 PM

Jana Small Finance Bank shares closed at ₹368.15, representing an 11.07% dip. The stock opened at ₹396 on the NSE, falling below the issue price of ₹414 with a 4% discount.

The ₹570 Crore offer comprised a fresh issue of 1.11 Crore shares valued at ₹462 Crore and an Offer for Sale (OFS) of 26.08 lakh shares worth Rs 108 Crore.

The IPO received robust subscription at 19.8 times, with a price band set at ₹393-414 per share.

Jana SFB is the fourth largest small finance bank in terms of AUM (Assets Under Management) and deposit size. As of September 30, 2023, the bank operated 771 banking outlets.

Jana Small Finance Bank commenced operations on March 28, 2018, and was previously India’s largest microfinance institution, Janalakshmi Financial Services, founded on July 24, 2006. The Reserve Bank of India issued a license to the bank under Section 22 (1) of the Banking Regulation Act, 1949.

As a microfinance lender, the company faced substantial losses after the 2016 Indian banknote demonetization, reporting total losses of ₹2,504 Crore at the time of its conversion to a small finance bank. Jana reported in November 2019 that the September 2019 quarter was its first profitable quarter since demonetization.

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