Jana Small Finance Bank IPO Receives Positive Analyst Reception Due to Strong Deposit Growth and Diversified Loan Portfolio, Reflected in 1.4x Price to Book Value Ratio.
The Bangalore-based Jana Small Finance Bank Ltd (Jana SFB), whose initial public offer (IPO) was open from February 7 to February 9, is in the process of finalizing its basis of allotment on Monday. The IPO, valued at Rs 570 crore by the SFB (formerly Janalakshmi Financial Services), witnessed a total subscription of 19.89 times. Additionally, it commanded a grey market premium (GMP) of Rs 37 per share over its issue price of Rs 414, indicating a potential 9% listing gain for investors. The stock is expected to debut on Thursday, February 14, alongside Rashi Peripherals and Capital Small Finance.
At its issue price, Jana Small Finance Bank had a price to book value of 1.4 times (FY24E annualized). Analysts were optimistic about Jana due to factors like deposit growth, diversified loan portfolio, strong brand equity, and improved asset quality ratios.
GMP Trends and IPO Listings
The listing of Jana SFB is expected to be tepid if the GMP trends hold true, unlike Apeejay Surrendra Park Hotels, which saw its shares listed on BSE and NSE today at a 20% premium over the issue price.
In addition to Jana SFB, three other IPOs have hit the street: Apeejay Surrendra Park Hotels, Capital Small Finance, and Rashi Peripherals. Collectively, these four IPOs raised a total of Rs 2,613 crore.
Grey Market Premium Update:
Capital Small Finance is currently commanding a “nil” premium in the grey market, while Rashi Peripherals has a grey market premium of Rs 75, indicating a potential 20% upside at stock listing. Both IPOs ran alongside Jana SFB from February 7 to February 9. Additionally, this week will see two mainboard IPOs totaling Rs 1,672 crore hitting Dalal Street.
nvestors who participated in the Jana Small Finance Bank IPO can check their allotment status on the Bombay Stock Exchange (BSE) website using the following steps:
- Visit https://www.bseindia.com/investors/appli_check.aspx
- Under the issue type, select Equity
- From the drop-down menu under issue name, choose Jana Small Finance Bank Ltd
- Enter the application number provided during IPO application
- Input the PAN card ID used for the application
- Complete the CAPTCHA verification by clicking on ‘I am not a Robot’
- Click on submit to view the allotment status.
Investors can also check the allotment status on the online portal of Kfin Technologies Limited, the registrar to the issue, by visiting https://kosmic.kfintech.com/ipostatus/. From there, they can input the required details to access their allotment status.
The registrar, being a SEBI-registered entity, is authorized to handle and electronically process all IPO applications. It conducts the allotment process according to the prospectus guidelines. Additionally, the registrar is responsible for adhering to the timelines for updating electronic share credits to successful applicants, dispatching and uploading refunds, and addressing all investor queries post-issue.
Here are the steps to check IPO allotment status on the web portal of Link Intime Limited:
- Visit the web portal of Link Intime Limited.
- Select the IPO from the dropdown menu, which will only appear if the allotment is finalized.
- Choose one of the three modes: Application number, Demat Account number, or PAN ID.
- Select the application type as either ASBA or non-ASBA.
- Enter the details based on the mode selected in Step 3.
- Complete the captcha accurately for security purposes.
- Click on the submit button to view the allotment status.
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