Jana Small Finance Bank Shares Close 11.23% Lower On Debut

Jana Small Finance Bank Ltd. shares closed their debut day 11.23% lower on the National Stock Exchange at Rs 367.5 apiece, a discount of 4.35% against the issue price of Rs 414 per share.

On the BSE, the shares of the technology products distributor also closed at 11.06% lower at Rs 368.20 apiece.

The stock debuted on both the National Stock Exchange and BSE at Rs 396 apiece, with a discount of 4.35% against the IPO price.

"Focus really is to do more of the same. I think the demand of housing and demand of housing backed business is so large ... we do realize there is big option there," Ajay Kanwal, managing director and chief executive officer of Jana Small Finance Bank told NDTV Profit.

Deposits growth of 37.7% year-on-year as of September 2023, indicates that they are able to grow deposits very well, according to Kanwal. "Because we are in the business of retail and small ticket, we do tend to have better margins which is why we can pass on extra margins to depositors so yes we have been doing that and we will continue doing that."

Digitisation has enabled them to offer better services to the customers with more streamlined processes, he said.

The Rs 570 crore initial public offering was subscribed 18.5 times. Institutional investors led demand (38.75 times), followed by HNIs (25.05 times). The retail basket was subscribed 5.46 times, and the employee portion by 1.95 times.

Jana Small Finance Bank intends to 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.