Jana Small Finance Bank and Capital Small Finance Bank, which both count a bunch of private equity and venture capital firms as their investors, made disappointing debuts on the stock market Wednesday as their shares listed below their respective issue prices.
Bengaluru-based Jana Small Finance Bank, whose IPO provided a full exit to Gawa Capital and a partial exit to PE firm The Rohatyn Group and the Hero group’s family office, listed at Rs 396, a discount of 4.3% against the IPO price of Rs 414. The shares ended the first day of trading at Rs 368.20 apiece, giving the lender a market value of Rs 3,851 crore.
Shares of Capital Small Finance Bank, which counts PE firms Amicus Capital and Oman India Joint Investment Fund as backer, listed at Rs 430.25, a discount of 8% against the initial public offering price of Rs 468 apiece. Its shares ended at Rs 434.30 apiece on the BSE, giving it a market value of Rs 1,956.20 crore.
The weak debuts came despite both the IPOs seeing strong oversubscription—18.5 times for Jana SFB and four times for Capital SFB.
Jana SFB raised Rs 462 crore through a fresh issue of shares in the IPO, which also included an offer for sale of 2.6 million shares by impact investor Gawa Capital, PE firm The Rohatyn Group (TRG) and Hero group family office.
The bank’s other investors include Tata Capital Growth Fund, Morgan Stanley Private Equity Asia, TPG, Treeline Investment Management, HarbourVest Partners, British International Investment, Singapore sovereign fund GIC and Amansa Capital. QRG Enterprises, the family office of the promoters of electrical equipment maker Havells, and stock market investor Vallabh Bhansali and his investment firm Enam Securities also are investors in Jana.
VCCircle previously reported that Gawa Capital might have taken a deep haircut on its investment in Jana SFB while TRG likely made 10-15% rupee returns and likely loss in dollar terms. Hero group’s family office likely scored a 3x returns.
As for Capital SFB, the lender raised Rs 450 crore via a fresh issue. The IPO also included an offer for sale by mid-market PE firms Amicus Capital and Oman India Joint Investment Fund (OIJIF) and the family office of Ambuja Cements’ co-founder Narotam Sekhsaria. VCCircle previously reported that Amicus and OIJIF likely scored 2x returns on their investment in Capital SFB.
