Jana Small Finance Bank IPO: ₹570-cr 10 Key Risks Investors Should Know Before Investing in Jana SFB IPO Stocks

Jana Small Finance IPO: Jana Small Finance Bank IPO will launch on Wednesday, February 7th and close on Friday, February 9th. Jana SFB IPO was fully booked on his second day.

On the first day, Jana Small Finance Bank’s IPO subscription status was 88%. The individual (1.20x) and non-institutional investor (NII) portions (1.22x) were fully subscribed. The Qualified Institutional Buyer (QIB) portion was 14% booked and the Employee Reserve portion was 31% booked.

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Also read: Jana Small Finance Bank IPO Day 1: Stock subscription rate so far is 34%. The retail portion accounted for 59%. GMP, check key details

Jana Small Finance Bank’s IPO price band is fixed in the following range: INRFrom 393 INR414 per share of par value INR10 pieces each. Jana Small Finance Bank IPO Funding INROn Tuesday, February 6th, 1669.5 billion yen was raised from anchor investors. Jana Small Finance Bank’s IPO lot size will be 36 shares and subsequent multiples of 36 shares.

Jana SFB IPO has reserved at least 50% of the publicly issued shares for qualified institutional investors (QIBs), at least 15% for non-institutional investors (NII) and at least 35% of the offering. Masu. Reserved for individual investors.

Also read: Jana Small Finance Bank IPO: From price range to GMP – 10 things to know before subscribing to the issue

Jana Small Finance Bank’s IPO aims to raise funds INR$570 million from the initial offer, of which INRThe purpose of the $462 million is to issue new shares.rest INR$180 million has been secured through the offering for sale (OFS) route.

Jana Small Finance Bank’s IPO GMP or gray market premium is +52. This indicates that Jana Small Finance Bank’s stock price is trading at a premium. INRAccording to investorgain.com, there are 52 companies in the gray market.

Also read: Jana Small Finance Bank IPO to be launched today. Please check GMP. Do I need to subscribe?

Some of the key risks listed by the company in its Red-Herring Prospectus (RHP) are listed below.

• National Pension Scheme Trust, PFRDA, IRDA, RBI and other regulatory bodies have all conducted inspections of Jana SFB. A violation of the findings of these authorities could all affect its operations, cash flow, financial condition, and business.
• As per the RBI in-principle approval, RBI final approval, SFB operational guidelines and SFB licensing guidelines, Jana SFB is subject to restrictions with respect to shares.
• If Jana SFB is unable to comply with or renew the legal and regulatory licenses, permits and approvals required to operate the company, Jana SFB’s business, financial condition, results of operations and cash flows could all be affected; there is.
• RBI will have to give approval to the individuals nominated as Executive Director, Managing Director and Chairman. Additionally, under certain conditions, RBI has the right and ability to terminate employees or management.
• Failure to comply with required AML, KYC, and CFT rules and regulations can expose you to liability, damage your company’s brand, and harm your company’s operations.
• A bank with a low core deposit ratio has fewer assets backed by deposits, suggesting that the bank is less liquid. If we are unable to increase our core deposit ratio, Jana SFB’s operations, cash flows, financial condition and the Company could be adversely affected.
• Jana SFB is making new loans to microfinance loan customers (NPAs; these borrowers are referred to as “microfinance NPA borrowers”) with non-performing assets, which may further deteriorate asset quality and increase credit risk. There is sex. The proceeds of these new loans will offset his earlier NPAs.
• Jana SFB’s financial condition and results of operations if Jana SFB is unable to control the amount of our non-performing assets (“NPAs”), if we are unable to maintain adequate reserve coverage, or if laws requiring reserves change; may have a negative impact.
• Since the majority of Jana SFB’s loans are microfinance loans and most of the borrowers on these loans have poor sources of income, Jana SFB’s unsecured loans carry greater credit risk than secured loans. If we are unable to collect these advances on a timely basis or at all, Jana SFB’s financial condition, results of operations and cash flows will be harmed.
• Interest rate risk affects Jana SFB and, if it were to occur, it could negatively impact our net interest margin, negatively impact our net interest income and ultimately our operating and cash flow performance. Masu.

Also read: Jana Small Finance Bank IPO: Issuance completed on second day; It has been subscribed 1.4 times so far. GMP check and review

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