Jana Small Finance Bank shares rebounded sharply, surging over 18 percent to Rs 435 on February 15, a day after it made a subdued market debut at a 4 percent discount compared to the IPO price on February 14.
On February 15, the stock opened at Rs 375 on the NSE, lower than the issue price of Rs 414. Jana SFB's listing performance was below the anticipated 7 percent premium expected by analysts. With today's gain, the stock has breached the upper price band.
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Wondering whether to buy, hold or sell post the listing? Here's what experts have to say.
Amit Goel, co-founder and chief global strategist at Pace 360 suggested that investors with shares should park funds for medium- to long-term rewards. "While the lender marked a setback in margins for FY22 in line with general trends for the industry on account of the coronavirus pandemic, it is back on track as indicated by its financial performance from FY23 onwards", Goel said. He also added that the issue is reasonably priced based on the annualised FY24 earnings.
Shreyansh V. Shah, Research Analyst at StoxBox, advised investors who have been allotted the shares to hold them for the long term as the issue price has been reasonably valued. "We believe that the small finance bank is growing as it has transitioned its focus from microfinance loans to expanding its secured loan book, including affordable housing loans, secured business loans, gold loans, MSME loans, and two-wheeler loans", Shah said, referring to the growth prospects of the bank.
The Rs 570-crore offer, comprising a fresh issue of 1.11 crore shares valued at Rs 462 crore and an offer for sale (OFS) of 26.08 lakh shares worth Rs 108 crore, received a robust subscription of 19.8 times. The price band for the IPO was set at Rs 393-414 per share.
Jana SFB is the fourth largest small finance bank in terms of AUM and deposit size. As of September 30, 2023, the bank had 771 banking outlets.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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