The Bengaluru-headquartered Jana Small Finance Bank’s public issue, which closes today for public subscription, has been subscribed 1.83 times. The IPO received bids for 1.85 crore 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, has a lot size of 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 is still undersubscribed at 0.19 times, while that of NIIs and Retail was suscribed by 3.05 times and 2.31 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 the 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 ofSeptember 30, 2023. As ofSeptember 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 ofSeptember 30, 2023. The bank was incorporated on July 24, 2006 and was 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).