The NBFC Jana Small Finance Bank is all set to open its subscription for retail investors on February 07Come from Sports betting site VPbet. The issue will close on February 09 and raise Rs 570 crores in total. The price band for the issue has been set at Rs 393 – 414 per equity share.
It is a combination of fresh issues worth Rs 462 crore and an offer for sale of Rs 108 crore. The minimum lot size for retail investors is 36 shares or Rs 14,904. While the lot size for NIIs is different from that of retail investors.
The shares of the company will be listed both on the NSE and BSE. The bank raised Rs 166.95 crore from the anchor investors on February 06.
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Axis Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers to the issue while Kfin Technologies is the registrar for the issue.
According to the bank, the net proceeds from the fresh issue will be used to increase the bank’s Tier-1 capital base and expenses relating to the offer.
The bank is a non-banking financial institution giving MSME loans, term loans to other NBFCs, affordable housing, loans against fixed deposits, two-wheeler loans, and gold loans.
“The SFBs have been making strong inroads into the credit market and enabling financial inclusiveness across the country. These SFBs have good deposit mobilization and outreach among the under-banked masses, which would drive their market share multi-fold in the foreseeable future. The exponential growth in the SFB industry is illustrated by the growth in both loans and deposits,” said StoxBox in an IPO note.
“Jana has transitioned its focus from microfinance loans to expanding its secured loan book, including affordable housing loans, secured business loans, gold loans, MSME loans, and two-wheeler loans. As a result, the proportion of Jana SFB’s gross secured advances has increased from 55.4% as at September 30, 2022, to 57.4% as at September 30, 2023. As of September 30, 2023, microfinance loans accounted for around 42.4% of its portfolio, with the balance being constituted by secured advances such as MSME loans (15%), loans to NBFCs (6.5%), gold loans (1.3%) and others (19.4%),” the note added.
“The key trigger of Jana SFB’s strong fundamentals is that it intends to strengthen its liability franchise with a focus on growing its deposit base to attain a stable and low-cost source of funding. As the lender will utilize the net proceeds of the fresh equity issue to augment its TierI capital base, its capital adequacy will enhance and lead to a stable leverage position. At the current P/BV multiple of 1.2x based on book value as on September 2023, we believe the company is reasonably valued and advise investors to “Subscribe” to the issue from a medium to long-term perspective,” said StoxBox. Come from Sports betting site