The Bengaluru-headquartered Jana Small Finance Bank’s public issue was subscribed 0.88 times on Day 1 of opening on Wednesday. The IPO received bids for 89.39 lakh shares as against an offer of 1.01 crore shares (net of anchor portion).

The IPO, which comes out with a price band of ₹393-414, will close on Friday. The lot size is 36 shares.

The 570-crore IPO consists of a fresh issue of ₹462 crore and ₹108 crore as offer for sale. Jana Holdings, the promoter holding 32 per cent of the bank, will reduce its stake to around 25 per cent post-issue. Client Rosehill, CVCIGP II Employee Rosehill, Global Impact Funds, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust and Hero Enterprise Partner Ventures are the selling shareholders through the OFS.

While 50 per cent of the issue is reserved for qualified institutional buyers, 15 per cent is reserved for non-institutional bidders and the balance of 35 per cent is for retail investors. QIB portion was subscribed 0.14 times, while that of NIIs and Retail by 1.22 times and 1.20 times respectively.

Anchor investors

PE majors TPG- and Morgan Stanley-backed Jana Small Finance Bank on Tuesday garnered ₹167 crore from anchor investors, as part of IPO.

The bank allotted 40.32 lakh shares to 17 funds at ₹414 a share which included 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 Company and Tata AIA Life Insurance Company.

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.

About the SFB

Jana Small Finance Bank is the fourth largest small finance bank in terms of AUM and the fourth largest Small Finance Bank in terms of deposit size as at September 30, 2023. As ofat September 30, 2023, it had 771 banking outlets, including 278 in unbanked rural centers, in 22 States and two union territories.

The bank is serving nearly 12 million customers since 2008, including 4.87 million active customers as at September 30, 2023. It was incorporated on July 24, 2006, registered as a non-banking finance company on March 4, 2008.

It started operating as a Small Finance Bank from March 28, 2018, and became a Scheduled Commercial Bank on July 16, 2019.

The primary secured loan products are secured business loans, micro-loans against property, MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans.

Its primary unsecured loan products are individual and micro business loans, agricultural and allied loans, and group loans (group loans are offered to a group of women as per the Joint Liability Group model).