TVS Venu Group to Buy 9.9% Stake in Jana Small Finance Bank
TVS Venu group will acquire a 9.9% stake in Jana Small Finance Bank through a combination of equity warrants and share purchases. The transaction is valued at 5.1 billion rupees and follows the bank's approval of additional warrant issuances to other investors.
TVS Motor and the TVS Venu group will acquire a 9.9% stake in Jana Small Finance Bank through a mix of primary and secondary transactions valued at 5.1 billion rupees. The deal involves a 3.17 billion rupee ($32.90 million) warrant subscription and a 1.93 billion rupee share purchase. Industrial groups are increasingly investing in niche financial institutions to diversify their portfolios and access growing consumer lending markets in India.
### Deal Structure and Pricing GWC Family Fund Investments, part of the TVS Venu group, will subscribe to warrants representing a 5.64% stake. The preferential issue is priced at 464.82 rupees per warrant. This price represents a 5.3% discount to Jana Small Finance Bank's closing price on the previous Friday.
