According to reports from CNBC TV18, Federal Bank is nearing a deal to acquire a controlling stake in Jana Small Finance Bank (SFB), with the transaction expected to be announced soon. The deal involves the promoter selling a 16.9% stake to Federal Bank, representing a significant ownership transfer in the small finance bank sector.
As reported by CNBC TV18, the deal may be completed at a 15% to 20% premium of Jana SFB's current market price, indicating a substantial premium over the bank's trading value. This pricing structure suggests the promoter's confidence in the bank's future prospects and Federal Bank's strategic interest in the acquisition.
According to CNBC TV18, at the end of the June quarter, the promoter of Jana SFB held a 16.9% stake in the bank. The promoter had previously divested 4.9% stake in the first quarter of this fiscal and intends to further monetise the remaining stake. The promoter is seeking reclassification to the public category once the stake falls below 9.99%, indicating a structured approach to stake reduction.
Latest market data shows 62.86% Buy rating from 35 analysts covering Federal Bank, indicating strong analyst confidence in the bank's prospects. This positive analyst sentiment reflects the market's view of Federal Bank's strategic expansion into the small finance bank sector through the Jana SFB acquisition. The deal represents a significant growth opportunity for Federal Bank in the competitive small finance banking space.
