The initial public offering (IPO) of Jana Small Finance Bank Limited opened for subscription today. The company aims to raise up to Rs 570 crore through the issue. It has already raised Rs 167 crore through anchor investors. The company operates as a non-banking financial institution with a focus on providing a range of financial services. It is headquartered in Bengaluru, India. The IPO is being managed by Axis Capital Limited, ICICI Securities Limited, and SBI Capital Markets Limited as the joint Book Running Lead Managers (BRLM).
Jana Small Finance Bank primarily serves financially underserved and unbanked segments of the population with a strong emphasis on digital banking. Its offerings include secured loans such as business, property, MSME, affordable housing, and gold loans. In addition, the company offers unsecured loan products such as individual and micro business loans, agricultural and allied loans, and women-empowerment group loans through the Joint Liability Group model.
The bank’s share price has been trading higher than the IPO issue price in the grey market since Monday, indicating good demand for its shares. As per several websites that track grey market premium or GMP, the company’s shares are currently fetching a premium of around 16 percent over the IPO price.
As of Tuesday, retail and NII investor bids for the Jana Small Finance Bank IPO have been fully subscribed, while QIB subscription has lagged behind. The issue has received bids for over 1.9 million shares, compared to the 5.2 million IPO size. The FII and DII categories have also received bids in excess of 1 million shares each.
Upon listing, the bank’s shares are expected to be traded on both BSE and NSE. The allotment for the IPO is likely to be finalized on February 12, while the listing date is scheduled for Feb 14.
The company’s promoters are Jana Capital Limited and Jana Holdings Limited. As per the terms of the IPO, they will receive a total of about 49% of the proceeds from the IPO.
Interested individuals can apply for the IPO by submitting their application form online or through the post. They can use their net banking user id and password to submit an online application. Investors can also access the IPO via their respective brokers’ online platforms. They can also opt for physical application by submitting their UPI mandate details. However, they must note that physical applications are only accepted when paid through UPI. Investors are advised to carefully read the IPO prospectus and related documents before making any investment decision. They should also seek independent professional advice if necessary. For more information on IPOs and to keep track of the latest IPO updates, click here. To start investing, you can open a demat and trading account with Moneysukh. The process is simple and hassle-free. You can also check the IPO schedule and other relevant details here.