Jana Small Finance Bank IPO Subscribed 0.88 Times On Day 1

Jana Small Finance Bank's initial public offering was subscribed 0.88 times on day one. The company launched its IPO on Wednesday to raise up to Rs 570 crore.

The price band of the IPO is fixed at Rs 393–414 per share. The three-day IPO closes on Friday.

According to the offer document, 5% of the issue is reserved for qualified institutional buyers and will be available only to mutual funds; 15% of the offer shall be available for allocation to non-institutional investors.

The IPO includes both a fresh issue of Rs 462 crore and an offer for sale of Rs 108 crore. Those selling shares in the OFS include TPG Asia, Morgan Stanley through its arm North Haven, Amansa Holdings, Hero Enterprises Partner Ventures, Bharati Satya Trustees, and Volrado Venture Partners.

The company has raised Rs 167 crore from anchor investors. The Bengaluru-headquartered bank has allocated 40.32 lakh equity shares to 17 funds at Rs 414 apiece, which is also the upper end of the price band. Citigroup Global Markets Mauritius, Societe Generale, East Bridge Capital Master Fund, Copthall Mauritius Investment Ltd., Bandhan Mutual Fund, Kotak Mahindra Life Insurance Company, SBI General Insurance Co., and Tata AIA Life Insurance Company participated in the anchor round.

• Issue opens: Feb. 7.

• Issue closes: Feb. 9.

• Total issue size: Rs 570 crore.

• Face value: Rs 10 apiece.

• Fixed price band: Rs 393-414 per share.

• Minimum lot size: 36 shares.

• Listing: NSE and BSE.

The bank will use the money from the fresh issue to augment its core capital to meet future capital requirements and to improve its capital adequacy ratio.

Jana Small Finance Bank established in 2006 provides loans to MSMSES, term loans to NBFCs, affordable housing loans, gold loans, two-wheeler loans and loans fixed deposits. The non-banking finance company also offers various unsecured loan products that includes individual and micro business loans, allied loans, group loans and micro business loans.

The IPO was subscribed 0.88 times, or 88%, as of 5:00 p.m. on Wednesday.

• Institutional investors: 0.14 times or 14%.

• Non-institutional investors: 1.22 times.

• Retail investors: 1.20 times.

• Employee Reserved: 0.31 times or 31%.