Jana Small Finance Bank to float Rs 570-crore IPO on Feb 7 at Rs 393-414 price band

Jana Small Finance Bank IPO opens on February 7

Bengaluru-based Jana Small Finance Bank has set the price band at Rs 393-414 per share for its upcoming initial public offering. The Rs 570-crore IPO will hit the market on February 7 and the last day for putting in bids will be February 9.

The anchor book of the IPO will open for a day on February 6. The public issue consists of fresh shares worth Rs 462 crore and an offer-for-sale (OFS) of 26,08,629 equity shares worth Rs 108 crore by six investors.

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 in the OFS.

Before launching the issue, the small finance bank has raised Rs 113.14 crore through equity shares and CCPS (compulsorily convertible preference shares).

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On January 19, it issued 24.39 lakh equity shares to several investors, including SBI General Insurance Company, Kotak Mahindra Life Insurance, Ananta Capital Ventures Fund 1, Anil Singhvi, Capri Global Holdings, and LC Pharos Multi Strategy Fund VCC - SF1, at the upper price band, while the bank issued 1.21 crore CCPS to another set of investors, including Krishnan Subramania Raman, Satish Ramchandran, Sumit Aggarwal, Pradeep Rebello, Gopal Tripathi, and Ajay Kanwal.

The above CCPS has converted into equity shares at a price of Rs 302.98 per share. The fresh issue proceeds will be largely used for augmenting the bank's Tier - 1 capital base to meet its future capital requirements.

Jana SFB that offers banking products has reserved half of its issue size for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 35 percent shares for retail investors.

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Investors can bid for a minimum of 36 equity shares and in multiples of 36 shares thereafter. Thus, the minimum application size for retail investors will be Rs 14,904 for 36 shares and their maximum investment will be Rs 1,93,752 for 468 equity shares as they can invest in IPO up to Rs 2 lakh.

The bank will finalise the basis of allotment of IPO shares by February 12 and the equity shares will be credited to the demat accounts of successful investors by February 13.

The equity shares will be available for trading on the bourses, with effect from February 14, as per the IPO schedule.

Axis Capital, ICICI Securities and SBI Capital Markets are the book running lead managers to the issue.