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Hot Pursuit News

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(14 Feb 2024, 10:26)

Jana SFB slides on debut

Shares of Jana Small Finance Bank (SFB) were currently trading at Rs 394.95 at 10:19 IST on the BSE, representing a discount of 4.60% as compared with the issue price of Rs 414.


The scrip was listed at Rs 396, exhibiting a discount of 4.35% to the issue price.

So far, the stock has hit a high of 408.80 and a low of 385.10. On the BSE, over 1.63 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Jana Small Finance Bank was subscribed 18.50 times. The issue opened for bidding on 7 February 2024 and it closed on 9 February 2024. The price band of the IPO was fixed at Rs 393-414 per share.

The offer comprised of fresh issue of equity shares aggregating up to Rs 462 crore and offer for sale of up to 26,08,629 equity shares.

The promoter, Jana Holdings, has not participated in the OFS. The promoter shareholding would decline to 22.5% post IPO from 25.2% pre-IPO.

The bank proposed to utilize the net proceeds from the offer towards augmenting Bank’s Tier I capital base to meet future capital requirements.

The listing of the bank is also in line with the terms of the RBI SFB licensing guidelines, requiring the bank to list its equity shares on the stock exchanges within three years from reaching network of Rs 500 crore.

Incorporated in July 2006, Jana SFB is a non-banking finance company primarily engaged in providing MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans. Jana SFB offers various unsecured loan products, including individual and micro business loans, agricultural and allied loans, and group loans.

Jana SFB is the fourth largest Small Finance Bank in terms of AUM as well as in terms of deposit size end September 2023. The bank has 771 banking outlets, including 278 banking outlets in unbanked rural centers, in 22 states and two union territories. The bank has served nearly 12 million customers since 2008, including 4.87 million active customers end-September 2023.

The firm reported a net profit of Rs 213.22 crore and net total income of Rs 1,339.26 crore for the six months ended on 30 September 2023.

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