Jana Small Finance Bank IPO: Day 1 Updates

Jana Small Finance Bank IPO: Day 1 Updates

Jana Small Finance Bank IPO: Day 1 Updates

The Initial Public Offering (IPO) of Jana Small Finance Bank commenced on January 7 and will remain open for bidding until February 9. This IPO, a book-built issue with a total worth of ₹570 crore, has garnered a decent response from retail investors on the first day.

Subscription Status and Response on Day 1

As of 12:25 pm on the first day, Jana Small Finance Bank IPO has been subscribed 34%, with total bids reaching 34.66 lakh equity shares against the available 1.01 crore shares. In specific categories, the retail segment subscribed 0.59 times, and the Non-Institutional Investors’ (NII) category subscribed 0.25 times. Qualified Institutional Buyers (QIB) are yet to participate in the bidding.

Grey Market Premium (GMP) Today

The Grey Market Premium for Jana Small Finance Bank IPO today is ₹66 per share, indicating a 15.94% increase compared to its IPO price of ₹480. This suggests that the bank’s shares are trading higher in the grey market.

Jana Small Finance Bank IPO Review and Recommendations

Being the fourth-largest small finance bank in terms of assets under management (AUM) and deposits as of September 30, 2023, Jana Small Finance Bank is recognized for its digitalized services. With a pan-India presence and a strong brand reputation, the IPO is considered fairly priced, with a Price/Book Value (P/BV) of 1.50x and a market cap of ₹43,300 million post the issue of equity shares. Brokerage firm Anand Rathi recommends a ‘Subscribe’ rating for the IPO.

IPO Details and Timelines

Jana Small Finance Bank IPO, open from January 7 to January 9, consists of a fresh issue of 1.12 crore equity shares and an Offer for Sale (OFS) of 26.08 lakh shares. The price band for the IPO is set at ₹393 to ₹414 per equity share, with a lot size of 36 shares. Retail investors need a minimum investment of ₹14,904. The allotment date is anticipated on February 12, and listing on both BSE and NSE is expected on February 14.

Axis Capital, ICICI Securities, and SBI Capital Markets serve as the book running lead managers, while Kfin Technologies is the IPO registrar.