Jana Small Finance Bank IPO Opens Today; Check GMP and Key Details Before Subscribing

The highly anticipated IPO of Jana Small Finance Bank initiates its public subscription phase today, offering investors an opportunity to invest in the rapidly growing bank. The book-built issue, which aims to raise ₹570 crore, will remain open for bidding until Friday, February 9.

The IPO price band has been set at ₹393 to ₹414 per equity share. The bank plans to list its shares on both the BSE and NSE.

Jana Small Finance Bank intends to raise capital through a combination of fresh issue of 1.12 crore equity shares, aggregating to ₹462 crore, and an offer for sale (OFS) of 26.08 lakh shares, amounting to ₹108 crore.

Potential investors should note that the lot size for the Jana SFB IPO is 36 shares, and the minimum investment amount required for retail investors is ₹14,904.

Ahead of the IPO’s opening, Jana Small Finance Bank secured ₹166.95 crore from 17 anchor investors, including prominent names like Citigroup Global, Turnaround Opportunity Fund, and Tata AIA Life Insurance Company. The bank allocated 40,32,588 equity shares to these investors.

The IPO Registrar for Jana Small Finance Bank is Kfin Technologies, while Axis Capital, ICICI Securities, and SBI Capital Markets serve as the book running lead managers.

According to market observers, the Grey Market Premium (GMP) for Jana Small Finance Bank IPO stands at ₹66 per share, indicating a 15.94% increase in value compared to the IPO price. This signals positive investor sentiment towards the bank.

Jana Small Finance Bank is the fourth largest small finance bank in terms of asset under management (AUM) and deposit size as of September 30, 2023. The bank boasts a digitalized platform and offers most of its services in digital form. With its customer-centric approach and pan-India presence, Jana Small Finance Bank has gained strong brand recognition and possesses over 16 years of experience in serving underbanked and underserved customers.

Anand Rathi, a leading brokerage firm, has recommended a ‘Subscribe’ rating to the IPO, stating that it is fairly priced considering the bank’s valuation and return on net worth.