Jana Small Finance Bank IPO: Today is the last day to apply for the initial public offering (IPO) of Jana Small Finance Bank. So far 3.20 times subscription has been received for this.
As of 11:43 am, the last day of bidding on Friday, 3,00,98,016 shares were received in the Rs 570 crore IPO, while there are 94,09,373 shares on offer.
The IPO, backed by private equity major TPG and Morgan Stanley, received 6.69 times bids from non-institutional investors, while the retail individual investors (RII) category received 3.33 times subscription.
The share of qualified institutional buyers (QBI) received 20 per cent membership. The listing of the bank is likely to happen on February 14.
The price band of Jana Small Finance Bank IPO has been fixed at ₹393 to ₹414 per equity share. The bank aims to raise ₹570 crore from the market. Of this, ₹462 crore is targeted to issue new shares. The remaining ₹108 crore is reserved for offer for sale.
What is the GMP of the bank?
According to Stock Market Observer, unlisted shares of Jana Small Finance Bank are trading at Rs 59 higher in the gray market than their upper issue price. The gray market premium or GMP of Rs 59 means that the gray market is expecting 14.25 percent listing profit from the public issue. GMP is based on market sentiments and keeps changing. However, on the basis of GMP it is understood at what price a share can be listed in the market. In view of the T+3 listing rule, the IPO allotment date of Jana Small Finance Bank is likely to be February 12, 2024. Kfin Technologies Limited has been appointed as the official registrar of the book build issue.
How much will have to be invested
Jana Small Finance Bank opted for pre-IPO placement of 24,39,607 equity shares at an issue price of Rs 414 per share. Investors included SBI General Insurance, Kotak Mahindra Life Insurance, Ananta Capital Ventures Fund, Arka Next Ventures, Capri Global Holdings and RPM Ventures Partners. Axis Capital, ICICI Securities and SBI Capital Markets are the book running lead managers to the issue, while Kfin Technologies is the registrar. Investors can bid for a minimum of 36 equity shares and thereafter in multiples of 36 shares. This means that the investor will have to invest a minimum of Rs 14,148.