A family enterprise of TVS Motor Company chairman emeritus Venu Srinivasan and another firm owned by the daughter of Indorama Corporation founder SP Lohia will acquire a 14.5% stake in Jana Small Finance Bank.
The TVS Venu Group will acquire a 9.9% stake through a combination of primary and secondary market deals, while Shruti Lohia’s 2I Capital PCC will buy 4.6%, Jana said in stock exchange filings.
The bank’s board on Monday approved a proposal to raise Rs 729 crore by selling convertible warrants on a preferential basis at Rs 464.82 per share.
Jana’s shares closed 5.5% lower at Rs 462.35 on the BSE Monday, partially recovering from the day’s low or 455.40.
TVS Venu, led by Srinivasan’s son and TVS Motor chairman Sudarshan Venu, will buy the stakes for Rs 511 crore. Its Singapore-based group firm, GWC Family Fund Investments Pte Ltd, will acquire 5.6% for Rs 318 crore in a primary market deal involving issuance of new shares. Group flagship TVS Motor will acquire 4.9% from Jana Holdings Ltd, the promoter of the bank, for Rs 193 crore.
The stake acquired through secondary sales will later dilute to 4.3% on an expanded base, a person familiar with the matter said.
TVS Motor shares ended 5.1% lower at Rs 3,288.85 on the BSE on Monday.
2I Capital will invest Rs 257 crore for its 4.6% stake.
Singularity Large Value Fund III, ICM Finance Private Ltd, Capri Global Ventures Private Ltd and Utpal Hemendra Sheth will also pick up small stakes in the bank, according to filings.
ET in its report on May 16 said Jana was in talks with multiple investors for raising Rs 700 crore.
TVS Venu’s interest in Jana Bank, a universal bank aspirant, would mark the group’s first investment in India’s banking sector. The investment would require approval from the Reserve Bank of India, which would examine the fit and proper criteria of the investor. No approval is required from the central bank for investment in banks up to 4.99%.
Jana Holdings, which owned 21.85% in the bank as of March 31, has entered into a share purchase agreement with TVS Motor Company to sell around 4.9% for Rs 193 crore. On a diluted basis, this would translate into 4.3% ownership, people aware of the matter explained.
“This investment in Jana is aligned with TVS Venu’s long-term approach to support high-quality institutions that serve India’s growing financial needs and its expanding digital financial eco-system,” Sudarshan Venu was quoted as saying in a statement issued by the company.
This is Jana’s first share sale after its public listing in February 2024. The fund infusion would boost its capital adequacy ratio by around 3 percentage points from the current 19.4%, a person familiar with the matter said.
Jana is planning to upgrade itself as a universal bank which will allow it to have easier regulations in terms of capital adequacy requirement and priority sector lending targets. It initially applied for the licence in June 2025 but the RBI returned the application in October citing some gaps while keeping the window open for a fresh application.
The bank posted a Rs 326 crore net profit for FY26, down from Rs 474 crore the preceding fiscal year. Gross loan portfolio rose 23% to Rs 36,289 crore.
Source: Economic Times