Jana Small Finance Bank, backed by TPG and Morgan Stanley, announced the pricing details for its initial public offering (IPO) on Friday. The bank set the price band at Rs 393-414 per share for its Rs 570-crore IPO, scheduled to open for subscription on February 7. Simultaneously, Capital Small Finance Bank will also launch its IPO worth Rs 523 crore on the same day, offering shares at a price band of Rs 445-468 per share.
Jana Small Finance Bank, headquartered in Bengaluru, plans to raise Rs 462 crore through primary share sales at the upper end of the price band, with an additional Rs 108 crore through an offer for sale. Ajay Kanwal, the bank’s Chief Executive and Managing Director, said that after public issue, Jana Holdings, the bank’s promoter holding 32 per cent of its shares, will reduce its stake to nearly 25 per cent.
Various external investors collectively own 68 per cent of the bank, with notable names such as TPG Asia, Morgan Stanley’s North Haven, Amansa Holdings, Hero Enterprises Partner Ventures, Bharati Satya Trustees, and Volrado Venture Partners. These investors plan to sell 10 million shares through the offer for sale (OFS).
Jana Holdings’ major shareholders include private equity player JUF (43.92 per cent), with TPG, Caladium Investments, North Haven, and QRG Enterprises holding significant stakes.
Jana Small Finance Bank has already raised Rs 449 crore through a preferential issue in the current fiscal year, in addition to Rs 216 crore in FY23 and Rs 60 crore in FY22 through similar routes, according to Kanwal. Proceeds from the IPO will be utilised to bolster the bank’s core capital for future requirements and to enhance its capital adequacy ratio.
Anchor investors will bid on February 6, with a reservation of up to Rs 13.5 crore for eligible employees. The offer document reserves 5 per cent of the issue for qualified institutional buyers, while up to 15 per cent will be available for non-institutional investors, with specific allocations based on application sizes.