Jana Small Finance Bank IPO Subscribed 18.50 Times On Day 3

Jana Small Finance Bank Ltd.'s initial public offering was subscribed 18.50 times on the final day.

The company launched its IPO on Wednesday to raise up to Rs 570 crore. It was subscribed 0.88 times on day one and 1.83 times on day two.

The price band of the IPO is fixed at Rs 393–414 per share. The three-day IPO will close 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 Co., SBI General Insurance Co., and Tata AIA Life Insurance Co. 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.

Established in 2006, Jana Small Finance Bank provides loans to MSMEs, term loans to NBFCs, affordable housing loans, gold loans, two-wheeler loans and loan fixed deposits.

The non-banking finance company also offers various unsecured loan products, including individual and micro business loans, allied loans, group loans and micro business loans.

The IPO was subscribed 18.50 times as of 7 p.m. on Friday.

• Institutional investors: 38.75 times

• Non-institutional investors: 25.05 times

• Retail investors: 5.46 times.

• Employee reserved: 1.95 times.