Jana Small Finance Bank makes weak debut, shares list at 4% discount to issue price

Shares of Jana Small Finance Bank made a weak debut on the bourses on Wednesday. The stock was listed with a 4 per cent discount on the BSE and National Stock Exchange (NSE) against the issue price of Rs 414.

In the mid-session trade, the 30-share BSE Sensex slumped 237.86 points or 0.33 per cent to 71,317.33 points, while NSE Nifty slipped 0.24 per cent to 21,690.35 points.

According to Zee Business Managing Editor Anil Singhvi, long-term can hold and short-term investors should keep a stoploss of Rs 414. 

The initial public offering (IPO) of Jana Small Finance Bank received 18.50 times subscription on the closing day of share sale on February 9.

The Bengaluru-headquartered firm's Initial Public Offering (IPO) had a fresh issue of up to Rs 462 crore and an Offer For Sale (OFS) of up to 26,08,629 shares. Shares were available for bidding in the price range of Rs 393-414 apiece.

Jana Small Finance Bank had garnered Rs 167 crore from anchor investors on February 6.

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