Jana Small Finance Bank's Rs 570 Crore IPO To Open On Feb 7

Private equity majors TPG and Morgan Stanley-backed Jana Small Finance Bank on Friday fixed the price band at Rs 393-414 apiece for its Rs 570-crore initial public offering which will open for subscription on Feb. 7.

On the same day, the Rs 523-crore IPO of another small lender Capital Small Finance Bank will open with a price band of Rs 445-468 per share.

The Bengaluru-headquartered Jana Small Finance Bank’s issue consists of primary share sale of Rs 462 crore at the upper end of the price band and the remaining Rs 108 crore as offer for sale, its chief executive and managing director Ajay Kanwal told PTI.

Jana Holdings, the promoter holding 32% of the bank, will reduce its stake to around 25% post-issue.

Another 68% stake is owned by over 20 external investors like TPG Asia (9.14%), Morgan Stanley through its arm North Haven (4.4%), Amansa Holdings (6.83%), Hero Enterprises Partner Ventures (4.85%), Bharati Satya Trustees (3.09%), and Volrado Venture Partners (3.32%) among others.

All these external investors together will be selling 10 million shares through the OFS.

Another private equity player JUF owns 43.92% in the holding entity Jana Holding, TPG and Caladium Investments own 19.99% each, North Haven owns 8.71% and QRG Enterprises owns 6.36%.

So far this fiscal the bank has raised Rs 449 crore through a preferential issue, Rs 216 crore through a similar route in FY23 and Rs 60 crore through equity in FY22, Kanwal said.

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.

Anchor investors bidding will be on Feb. 6, he said, adding the offer includes a reservation of up to Rs 13.5 crore for eligible employees.

According to the offer document, 5% of the issue is reserved for qualified institutional buyers and will be available only to mutual funds.

Up to 15% of the offer shall be available for allocation to non-institutional investors of which one-third portion is reserved for bidders with application size of over 0.20 million and up to 1 million; and two-thirds for bidders with application size of over 1 million.