Jana SFB, Rashi Peripherals, Capital SFB IPOs to open today; ₹1,693 cr at stake

This week is going to be action-packed for investors who are looking to park their money in IPOs as three mainboard companies will launch their public offer on February 7. Two small finance banks (SFBs) — Capital and Jana – as well as Rashi Peripherals, a national distribution partner for global technology brands in India, will keep the primary market busy with their combined public offering of ₹1,693 crore. Adding to it, the ₹920-crore IPO of Apeejay Surrendra Park Hotels will close on February 7, 2024.

While Rashi Peripherals looks to raise ₹600 crore via IPO route, Jana Small Finance Bank and Capital Small Finance Bank are eying to garner ₹570 crore and ₹523 crore, respectively, through the primary market. The IPO of Rashi Peripherals is entirely a fresh issue of equity shares with no offer for sale (OFS) component, while issues of Capital and Jana SFBs are combination of fresh equities and share sales by existing shareholders.

Here’s all you need to know about IPOs before they open for subscription:

Jana Small Finance Bank

The IPO of the country’s fourth largest small finance bank in terms of AUM and deposit size will open for subscription on February 7 and close on February 9. The Bengaluru-based lender has fixed the IPO price band at ₹393-₹414 per share, looking to raise ₹570 crore at the upper end of the price band.

The issue comprises a fresh issue of equity shares worth ₹462 crore and the remaining ₹108 crore through the OFS route. The lot size for the public issue is 36 shares and thereafter. The company has reserved half of the issue for qualified institutional buyers (QIB), up to 35% for retail investors, and the remaining 15% for non institutional investors (NII).

The bank plans to use capital raised from the fresh issue to augment its Tier 1 capital base to meet future capital requirements. A part of the fund will be also used towards meeting the expenses related to the offer.

A day ahead of the IPO, the SFB has raised ₹167 crore from anchor investors by allocating 40,32,588 equity shares at the price of ₹414 per equity share. A total of 17 institutional investors participated in the anchor book, including marquee institutional investors such as East Bridge Capital Master Fund, Turnaround Opportunity Fund, HDFC Life Insurance Company, SBI General Insurance Company, Kotak Iconic Fund, and SBI Life Insurance Company.

Capital Small Finance Bank

The ₹523 crore IPO of the small finance bank will open between February 7-9, at a price band of ₹445-468 per share. A bidder can apply in lots and one lot of the public issue will comprise 32 company shares.

Ahead of the opening of the public issue, the lender mobilised ₹157 crore from anchor investors by finalising the allocation of 33,53,013 equity shares to anchor investors at the upper end of the price band of ₹468 apiece.

The IPO of Oman India-backed Capital Small Finance Bank is a mixture of fresh equities of ₹450 crore and an OFS of 15,61,329 equity shares worth ₹73.07 crore by the existing shareholders. The SFB plans to use capital garnered from the issuance of fresh equities mainly for augmenting its Tier 1 capital base to meet future capital requirements.

Capital Small Finance Bank is the first non-NBFC microfinance entity to receive the SFB license in 2015. Headquartered in Jalandhar (Punjab), the lender operates in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh and Union Territory of Chandigarh.

Rashi Peripherals

The IPO of Rashi Peripherals, backed by Madhu Kela and Volrado Venture Partners, will open for subscription on February 7 and close on February 9. The ₹600-crore IPO of the company is completely a fresh issue of equity shares which will be used for repayment of debt, funding working capital requirements, and to meet general corporate purposes.

The price band has been fixed at ₹295-311 per share, while investors can bid for a minimum of 48 shares and in multiples thereafter. Almost 50% of the issue is reserved for QIB, 15% for NII bidders, and 35% for retail investors.

Ahead of the IPO, Rashi Peripherals has garnered ₹180 crore from anchor investors by allocating 5.78 lakh equity shares at the upper end of the price band at ₹311 per share. Foreign and domestic institutions who participated in the anchor were White Oak Capital, Ashoka India, ICICI Prudential, Volrado Ventures, Bajaj Alliance Life Insurance, Aditya Birla Sun Life Insurance, SBI General Insurance, BCAD, Singularity Growth Opportunity Fund and Authum Investments. The anchor book saw participation by 3 domestic mutual funds through 8 schemes amounting to ₹61 crore.

JM Financial Limited and ICICI Securities Limited are the book running lead managers to the Offer.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)