IPO Screener: Jana SFB and Capital Small Finance Listing

Key Points

• Listing Day: Shares of Jana SFB and Capital SFB set for listing on the bourses.
• Subscription Trends: Jana SFB IPO receives robust response, while Capital SFB IPO witnesses modest subscription.
• Utilization of Funds: Both banks plan to utilize IPO proceeds to strengthen capital base and meet future requirements.

Today marks an important milestone for investors as shares of two small finance banks, Jana SFB and Capital SFB, are scheduled to be listed at the bourses.

The initial public offerings (IPOs) of Jana Small Finance Bank and Capital Small Finance Bank, which concluded last Friday, witnessed varying subscription trends. While Jana SFB garnered significant investor interest, Capital SFB's IPO experienced a more subdued response.

Jana SFB has set its IPO price at $414. The $570 million IPO, comprising a fresh issue of $462 million and an offer for sale of $108 million, garnered bids for approximately 18.72 million shares against an offer of 1.01 million shares (net of anchor portion). The IPO was priced in the range of $393-$414.

The portion allocated for qualified institutional buyers (QIBs) was oversubscribed by 38.75 times, while non-institutional and retail investors subscribed 25.05 times and 5.46 times, respectively. Jana SFB intends to utilize the funds raised from the fresh issue to bolster its core capital and enhance its capital adequacy ratio, thereby positioning itself for future growth.

On the other hand, Capital Small Finance Bank has fixed its IPO price at $468. The $523 million IPO, featuring a fresh issue of $450 million, received bids for 3.26 million shares against an offer of 81.43 lakh shares (excluding anchor investors). The IPO witnessed subscription levels of 6.64 times by QIBs, 4.05 times by non-institutional investors, and 2.49 times by retail investors.

Prior to the IPO, Capital SFB secured $157 million from anchor investors. The bank intends to utilize the IPO proceeds to bolster its tier-I capital base and fulfill future capital requirements, along with covering expenses related to the offer.