Investor’s responses to the three IPOs that closed on Friday were mixed. Rashi Peripherals’ Rs 600 crore IPO was the most sought-after, subscribed over 59.7 times, while Jana Small Finance Bank (SFB) was booked nearly 18.5 times.
The response to Capital SFB’s Rs 523-crore issue was relatively modest, as it was booked only 4 times. Rashi’s IPO was entirely an offer for sale. The company is a leading distributor of global brands in the computing and communication space.
It also provides pre-sales, technical support, marketing services, and warranty management services. The company was valued at Rs 2,050 crore at the top end of the price band.
The IPOs of Jana SFB and Capital SFB were a mix of fresh and secondary fundraising. Both companies had to list to meet RBI norms. At the top end of the price band, Capital SFB was valued at Rs 2,104 crore, while Jana SFB was priced at Rs 4,330 crore.
Jana SFB is the fourth-largest Small Finance Bank in terms of AUM deposit size as of September 30, 2023, and has 771 banking outlets in 22 states and two Union Territories. The company plans to utilise the net proceeds of the fresh issue towards meeting its future capital requirements.
Capital SFB commenced operations as India’s first small finance bank in 2016.
The company offers a range of banking products, including agriculture loans, MSME and trading loans, and mortgages.
As of September 30, 2023, Capital SFB is present in five states and one Union Territory with 173 branches.
First Published: Feb 09 2024 | 8:48 PM IST
