February 18, 2024
Jana Small Finance Bank IPO Receives Strong Response; GMP and Subscription Details
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Jana Small Finance Bank IPO Receives Strong Response; GMP and Subscription Details

Jana Small Finance Bank IPO Receives Strong Response; GMP and Subscription Details

Jana Small Finance Bank IPO Receives Strong Response; GMP and Subscription Details

The Jana Small Finance Bank IPO, open for bidding since February 7, has garnered significant interest, with the subscription reaching 1.43 times on the second day of the process. The IPO, valued at ₹570 crore, has witnessed robust response from retail investors and Non-Institutional Investors (NII).

Subscription Status:

  • Total bids for 1.44 crore equity shares were received, surpassing the 1.01 crore shares on offer.
  • The retail category witnessed a subscription of 1.88 times, while the NII category was subscribed 2.20 times.
  • Qualified Institutional Buyers’ (QIB) portion reached 14%.

Grey Market Premium (GMP) Today:

  • Jana Small Finance Bank IPO GMP today stands at ₹59 per share, indicating a 14.25% increase over the IPO price, trading at ₹473 in the grey market.

IPO Review and Recommendations:

  • Jana Small Finance Bank is the fourth largest small finance bank in terms of AUM and deposits as of September 30, 2023.
  • At the upper price band of ₹414, it is considered reasonably priced compared to peers, with a P/Bv of 1.4x (FY24E annualized).
  • Geojit Financial Services assigns a “Subscribe” rating on a medium to long-term basis, citing rapid growth, diversified loan portfolio, strong brand equity, improved asset quality ratios, healthy return ratios, and financial inclusion.

IPO Details:

  • The IPO, closing on February 9, comprises a fresh issue of 1.12 crore equity shares and an offer for sale (OFS) of 26.08 lakh shares.
  • The price band is ₹393 to ₹414 per equity share, with a lot size of 36 shares and a minimum investment amount of ₹14,904 for retail investors.
  • Jana Small Finance Bank IPO allotment is expected on February 12, with listing scheduled for February 14 on both BSE and NSE.

Book Running Lead Managers and Registrar:

  • Axis Capital, ICICI Securities, and SBI Capital Markets are the book running lead managers.
  • Kfin Technologies is the IPO registrar.

Investors are closely watching the IPO, considering the positive response and the bank’s prominent position in the small finance sector.

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