Jana Small Finance Bank Raises ₹166.95 Crore from Anchor Investors Ahead of IPO

6 Feb 2024 , 09:29 PM

Jana Small Finance Bank successfully raised ₹166.95 Crore from prominent institutional investors on February 6, just ahead of the commencement of its public offering.

According to the bank’s filing with the Bombay Stock Exchange, it has allocated 40,32,588 equity shares to anchor investors at a price of ₹414 per share. Notably, 17 institutional investors participated in this anchor book, with significant contributions from East Bridge Capital Master Fund and SBI Life Insurance Company, each investing ₹24.99 Crore.

Other major investors in the anchor book included Turnaround Opportunity Fund, HDFC Life Insurance Company, SBI General Insurance Company, and Kotak Iconic Fund, collectively investing ₹58 Crore in Jana Small Finance Bank.

Additionally, prominent names such as Citigroup Global, Copthall Mauritius Investment, Societe Generale Astrone Capital, 360 One Mutual Fund, Bandhan Mutual Fund, Tata AIA Life Insurance Company, Kotak Mahindra Life Insurance, and Ananta Capital Ventures Fund also participated in the anchor book.

Out of the total allocation to anchor investors, comprising 40,32,588 equity shares, a portion of 2,47,560 equity shares (equivalent to 6% of the total anchor allocation) was allocated to a domestic mutual fund through two schemes.

The Bengaluru-based small finance bank is set to launch its initial public offering (IPO) worth ₹570 Crore, scheduled for subscription from February 7 to February 9, with a price band set at ₹393-414 per share. The IPO comprises a fresh issuance of shares worth ₹462 Crore by the bank and an offer-for-sale (OFS) of 26,08,629 equity shares worth ₹108 Crore by six investors.

Among the selling shareholders in the OFS are Client Rosehill, CVCIGP II Employee Rosehill, Global Impact Funds, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust, and Hero Enterprise Partner Ventures.

Jana Small Finance Bank plans to utilize the net proceeds from the fresh issue to bolster its Tier-1 capital base, thereby positioning itself to meet future capital requirements while continuing to offer a diverse range of banking products.