Jana Small Finance Bank IPO: The book building IPO’s price band is ₹393 to ₹414 per share, while the Jana Small Finance Bank IPO’s stock has a face value of ₹10 per share. The IPO of Jana Small Finance Bank will consist of both an offer for sale (OFS) and a new share issuance. Although the new issue tends to attract new capital to the company, it also dilutes equity and profits per share. Conversely, OFS is merely an ownership transfer.
The Jana Small Finance Bank Ltd. IPO’s fresh issue portion consists of issuing 1,11,59,420 shares, or roughly 111.59 lakh shares. At the upper price range of ₹414 per share, this translates to a fresh issue size of ₹462 crore. The sale of 26,08,629 shares, or roughly 26.09 lakh shares, is part of Jana Small Finance Bank Ltd’s offer for sale (OFS) portion of its initial public offering (IPO). At the upper price band of ₹414 per share, this translates to an OFS size of ₹108 crore.
Investor shareholders will make up the whole OFS size of ₹26.09 lakh shares. Client Rosehill Ltd., CVCIGP II Employee Rosehill Ltd., Global Financial Inclusion Fund, Growth Partnership II, and Hero Enterprise Partner Ventures are a few of the investor shareholders offering shares in the OFS. Therefore, the Jana Small Finance Bank IPO will consist of an initial public offering (IPO) and an offer for sale (OFS) of 1,37,68,049 shares, or roughly 137.68 lakh shares, at the top of the price range of ₹414 per share, for a total issue size of ₹570 crore.
The NSE and BSE will list Jana Small Finance Bank Ltd.’s initial public offering (IPO) on their main boards. Presently holding a 25.20 percent stake in Jana Small Finance Bank Ltd., the promoters’ stake will be diluted following the IPO. Lead managers of the IPO will be SBI Capital Markets, ICICI Securities, and Axis Capital. The IPO’s registrar will be KFIN Technologies Ltd.
GMP for Jana Small Finance Bank Ltd.
There are 2 factors that impact the GMP. First off, the state of the market, particularly the liquidity in the market, has a significant influence on the GMP. Secondly, the GMP is significantly impacted by the IPO’s level of subscription, which is a sign of investor interest in the stock. It is possible for GMP to be negative, in which case the stock would be listed below the issue price.
Trading in the grey market price (GMP) typically begins four to five days before the IPO opens and lasts until the listing date. We already have GMP data for the last three days in the case of Jana Small Finance Bank Ltd., which ought to provide a fair indication of the IPO’s anticipated listing price.
The GMP is impacted by two things. First off, the GMP is greatly impacted by the state of the market, particularly by the liquidity conditions therein. Second, as a measure of investor interest in the stock, the IPO’s level of subscription has a significant effect on the GMP. Technically, GMP could even be negative, in which case the stock would list below the issue price.
One small thing to keep in mind in this situation. Just a widely used informal price point, the GMP is not an official one. It has been noted, nevertheless, that it is generally a reliable informal indicator of supply and demand for the IPO. Thus, it does provide a general idea of how the listing and the stock’s performance after listing are expected to go.
Jana Small Finance Bank IPO Details
| IPO Date | February 7, 2024 to February 9, 2024 |
| Listing Date | Wednesday, 14 February |
| Face Value | ₹10 per share |
| Price Band | ₹393 to ₹414 per share |
| Lot Size | 36 Shares |
| Total Issue Size | 13,768,049 shares (aggregating up to ₹570.00 Cr) |
| Fresh Issue | 11,159,420 shares (aggregating up to ₹462.00 Cr) |
| Offer for Sale | 2,608,629 shares of ₹10 (aggregating up to ₹108.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 93,430,855 |
| Share holding post issue | 104,590,275 |
The Jana Small Finance Bank IPO Application Process
The minimum number of shares that an investor must submit with their IPO application is known as the lot size. Since it is a mainboard issue, the lot size only applies to the IPO. Once it is listed, it can even be traded in multiples of one share. The minimum lot size and its multiples are the only investment options available to IPO participants. The minimum lot size for Jana Small Finance Bank Ltd. is 36 shares, and the upper band indicative value is ₹14,904. The minimum and maximum lot sizes that apply to various investor categories in Jana Small Finance Bank Ltd.’s initial public offering (IPO) are shown in the table below.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 36 | ₹14,904 |
| Retail (Max) | 13 | 468 | ₹1,93,752 |
| S-HNI (Min) | 14 | 504 | ₹2,08,656 |
| S-HNI (Max) | 67 | 2,412 | ₹9,98,568 |
| B-HNI (Min) | 68 | 2,448 | ₹10,13,472 |
