Jana SFB's Rs 570-crore IPO to open on February 7; price band at Rs 393-414/share

Jana Small Finance Bank IPO: Private equity majors TPG and Morgan Stanley-backed Jana Small Finance Bank on Friday fixed the price band at Rs 393-414 apiece for its Rs 570-crore initial public offering which will open for subscription on February 7.

On the same day, the Rs 523-crore IPO of another small lender Capital Small Finance Bank will open with a price band of Rs 445-468 per share.

The Bengaluru-headquartered Jana Small Finance Bank's issue consists of primary share sale of Rs 462 crore at the upper end of the price band and the remaining Rs 108 crore as offer for sale, its chief executive and managing director Ajay Kanwal told PTI.

Jana Holdings, a promotor which holds 32 per cent of the bank, will reduce its stake to around 25 per cent post-issue.

Another 68 per cent stake in the company is owned by over 20 external investors like TPG Asia (9.14 per cent), Morgan Stanley through its arm North Haven PE (7 per cent), Amansa Holdings (9 per cent), Hero Enterprises Partner Ventures (4.85 per cent), Bharati Satya Trustees (3.09 per cent), and Volrado Venture Partners (3.32 per cent) among others. All these external investors together will be selling 10 million shares through the OFS.

Before the recent capital raise pre-IPO, TPG had held 43.92 per cent in the company, Caladium Investments owned 19.99 per cent, North Haven (Morgan Stanley) owned 19.99 per cent.

QRG Enterprises owned 8.71 per cent, and Enam Securities held 6.36 per cent.

So far this fiscal the bank has raised Rs 449 crore through a preferential issue, Rs 216 crore through a similar route in FY23 and Rs 60 crore through equity in FY22, Kanwal said.

The bank will use the money from the fresh issue to augment its core capital to meet future capital requirements and to improve its capital adequacy ratio.

Anchor investors bidding will be on February 6, he said, adding the offer includes a reservation of up to Rs 13.5 crore for eligible employees.

According to the offer document, 5 per cent of the issue is reserved for qualified institutional buyers and will be available only to mutual funds.

Up to 15 per cent of the offer shall be available for allocation to non-institutional investors of which one-third portion is reserved for bidders with application size of over 0.20 million and up to 1 million; and two-thirds for bidders with application size of over 1 million.