Jana Small Finance Bank IPO Oversubscribed by Investors
The initial public offering (IPO) of Jana Small Finance Bank has experienced a strong response from investors, with the issue being heavily oversubscribed. The IPO, which opened for bidding on February 7 and closes today, February 9, has seen total bids for 4.55 crore equity shares, compared to 1.01 crore shares on offer. The subscription status as of 1:10 pm on Friday shows that the public issue has been subscribed 4.5 times, with the retail category being subscribed 3.77 times, the Non-Institutional Investors’ (NII) category subscribed 10.97 times, and the Qualified Institutional Buyers’ (QIB) portion subscribed 1.24 times.
Grey Market Premium and Review of Jana Small Finance Bank IPO
Market observers are reporting a grey market premium (GMP) of ₹59 per share for Jana Small Finance Bank IPO. This indicates a 14.25% increase from the IPO price. BP Equities has reviewed the IPO and believes that the company is reasonably valued, advising investors to subscribe to the issue from a medium to long-term perspective. Jana Small Finance Bank is the fourth largest small finance bank in terms of asset under management and deposit size as of September 2023.
Jana Small Finance Bank IPO Details
The Jana Small Finance Bank IPO is worth ₹570 crore and consists of a fresh issue of 1.12 crore equity shares, aggregating to ₹462 crore, and an offer for sale (OFS) of 26.08 lakh shares, aggregating to ₹108 crore. The price band for the IPO is ₹393 to ₹414 per equity share, with a lot size of 36 shares. The minimum investment amount required by retail investors is ₹14,904. The net proceeds from the fresh issue will be used to augment the bank’s Tier-I capital base and meet its future capital requirements.
Allotment Date and Listing Date
The allotment date for the Jana Small Finance Bank IPO is expected to be on February 12, with refunds and shares credited to investors’ demat accounts on February 13. The equity shares of the bank are likely to be listed on February 14, on both the BSE and NSE. Axis Capital, ICICI Securities, and SBI Capital Markets are the book running lead managers of the IPO, while Kfin Technologies is the IPO registrar.
Disclaimer:
The views and recommendations mentioned in the article are those of individual analysts or broking companies and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
Analyst comment
Positive news: The Jana Small Finance Bank IPO has been oversubscribed, indicating strong investor demand. The IPO is expected to perform well in the market.
Analyst viewpoint: The oversubscription of the Jana Small Finance Bank IPO suggests strong investor interest and confidence in the company. This could lead to a positive listing and potential gains in the medium to long-term.
