Jana Small Finance Bank Limited is set to make waves with its Initial Public Offering (IPO), a book-built issue of Rs 570.00 crores. This IPO consists of a fresh issue of 1.12 crore shares, amounting to Rs 462.00 crores, and an offer for sale of 0.26 crore shares, aggregating to Rs 108.00 crores.
IPO Dates and Listing
The Jana SFB IPO subscription period runs from February 7, 2024, to February 9, 2024. The allotment is anticipated to be finalized by Monday, February 12, 2024, with the stock making its debut on the BSE and NSE on Wednesday, February 14, 2024.
Pricing Insights
With a price band set at ₹393 to ₹414 per share, the minimum lot size is 36 shares, requiring a retail investor investment of ₹14,904. Significant investments for S-NII and B-NII are 14 lots (504 shares) and 68 lots (2,448 shares), translating to ₹208,656 and ₹1,013,472, respectively.
Key Players
Axis Capital Limited, ICICI Securities Limited, and SBI Capital Markets Limited are the book running lead managers, while Kfin Technologies Limited serves as the registrar for the IPO.
Jana Small Finance Bank IPO at a Glance
- IPO Date: February 7, 2024, to February 9, 2024
- Listing Date: [To be Announced]
- Face Value: ₹10 per share
- Price Band: ₹393 to ₹414 per share
- Lot Size: 36 Shares
- Total Issue Size: 13,768,049 shares (₹570.00 Cr)
- Fresh Issue: 11,159,420 shares (₹462.00 Cr)
- Offer for Sale: 2,608,629 shares (₹108.00 Cr)
- Issue Type: Book Built Issue IPO
- Listing At: BSE, NSE
- Shareholding Pre-Issue: 93,430,855
- Shareholding Post-Issue: 104,590,275
Jana SFB IPO Timeline
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- IPO Open Date: Wednesday, February 7, 2024
- IPO Close Date: Friday, February 9, 2024
- Basis of Allotment: Monday, February 12, 2024
- Initiation of Refunds: Tuesday, February 13, 2024
- Credit of Shares to Demat: Tuesday, February 13, 2024
- Listing Date: Wednesday, February 14, 2024
- Cut-off time for UPI mandate confirmation: 5 PM on February 9, 2024
Jana SFB IPO Lot Size
Investors can bid for a minimum of 36 shares and in multiples thereof. Refer to the table below for the minimum and maximum investments by retail investors and HNI in terms of shares and amounts.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 36 | ₹14,904 |
| Retail (Max) | 13 | 468 | ₹193,752 |
| S-HNI (Min) | 14 | 504 | ₹208,656 |
| S-HNI (Max) | 67 | 2,412 | ₹998,568 |
| B-HNI (Min) | 68 | 2,448 | ₹1,013,472 |
Jana SFB IPO Promoter Holding
The promoters of the company are Jana Capital Limited and Jana Holdings Limited, holding 25.20% of the shareholding pre-issue.
About Jana Small Finance Bank Limited
Incorporated in July 2006, Jana Small Finance Bank is a non-banking finance company primarily focusing on providing MSME loans, affordable housing loans, term loans, two-wheeler loans, and gold loans. The bank offers various unsecured loan products, serving a diverse range of needs.
As of March 31, 2023, Jana Small Finance Bank had a pan-India presence with 754 banking outlets. The bank’s gross secured advances witnessed a robust CAGR of 39.69% from ₹50,760.00 million to ₹99,047.54 million between March 31, 2021, and March 31, 2023.
Financial Snapshot
Jana Small Finance Bank’s financial performance between March 31, 2022, and March 31, 2023, reflects significant growth, with a 20.82% increase in revenue and a remarkable 1365.12% rise in profit after tax.
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets | ₹28,105.87 | ₹25,643.69 | ₹20,188.71 | ₹19,078.66 |
| Revenue | ₹2,215.57 | ₹3,699.88 | ₹3,062.37 | ₹2,720.74 |
| PAT | ₹213.22 | ₹255.97 | ₹17.47 | ₹72.26 |
| Net Worth | ₹2,547.11 | ₹1,777.07 | ₹1,184.56 | ₹1,100.77 |
| Reserves | ₹2,225.44 | ₹1,472.28 | ₹999.29 | ₹914.09 |
| Borrowing | ₹5,313.54 | ₹6,277.46 | ₹4,509.83 | ₹4,815.32 |
Key Performance Indicators (KPIs)
- Market Capitalization: ₹4,330.04 Cr
- ROE: 16.78%
- Debt/Equity: 3.49
- RoNW: 14.40%
- P/BV: 1.28
IPO Rating: Rated 3.8 stars
Grey Market Premium (GMP)
The grey market premium for Jana Small Finance Bank IPO has seen a positive trend, indicating a healthy investor interest. As of February 5, 2024, the GMP stands at ₹108 per share on the upper price band of ₹414, signaling a listing premium of 26.09%.
GMP Trend Summary
| Date | GMP | Expected Gains |
|---|---|---|
| 6-Feb-24 | ₹80 | 19.32% |
| 5-Feb-24 | ₹80 | 19.32% |
| 4-Feb-24 | ₹108 | 26.09% |
| 3-Feb-24 | ₹108 | 26.09% |
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GMP as a Listing Predictor
The GMP trend often aligns with the likely listing price, offering valuable insights. Past data suggests that GMP has been a reliable predictor, providing a broad idea of the listing status. For Jana SFB IPO, a GMP of ₹108 per share points towards a robust 26.09% listing premium, indicating a potential listing price of approximately ₹522 per share.
Conclusion: Charting New Horizons
As Jana Small Finance Bank sets forth on its IPO journey, the financial landscape anticipates a transformative phase. With strong financials, strategic positioning, and a positive GMP trend,Jana Small Finance Bank IPO opens doors to wealth creation. Keep a close eye on subscription updates and GMP fluctuations as they unfold, guiding the course of this financial expedition.
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