Jana Small Finance Bank Shares Make Weak Debut on Stock Market

Jana Small Finance Bank shares presented a disappointing performance upon their debut on the Indian stock market amidst strong anticipation from investors. The shares were listed with a four percent discount at the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in comparison to the issue price of Rs. 414 per share.

Despite an initial slump, Jana Small Finance Bank shares witnessed further selling pressure, resulting in a decline of over seven percent from the listing price. The share price dropped to Rs. 366.20 apiece on the BSE, marking an 11.54% decrease from the IPO price.

Analysts, including Shivani Nyati, the Head of Wealth at Kotak Mahindra Bank, voiced concerns over the bank’s future prospects following the lackluster listing. Factors like regulatory constraints, borrower creditworthiness, and dependency on unsecured loans are noted as persistent concerns that could impact investor sentiment.

Jana Small Finance Bank recently raised Rs. 570 crore through its initial public offer (IPO) comprising a fresh issue and an offer for sale (OFS). The IPO was managed by Axis Capital and SBI Capital Markets, while Kfin Technologies served as the IPO registrar.

Investors showed strong interest in the IPO, with the company receiving 18.50 times the subscription demand. Ahead of the IPO, Jana Small Finance Bank secured Rs. 167 crore from anchor investors, indicating positive market sentiment.