TVS Motor to Acquire 5.64% Stake in Jana Small Finance Bank for Rs 317 Crore

TVS Venu Group Set to Acquire Stake in Jana Small Finance Bank

TVS Motor Company shares experienced a decline of 5 percent on Monday following the announcement of a significant investment by the TVS Venu Group in Jana Small Finance Bank (SFB). The investment involves the acquisition of a 5.64 percent stake in the lender through warrants worth Rs 317 crore.

According to Jana SFB, GWC Family Fund Investments, a part of the TVS Venu Group led by industrialist Venu Srinivasan, will subscribe to warrants through a preferential issue at Rs 464.82 apiece. This issue price represents a discount of 5.3 percent to Jana SFB's closing price on Friday.

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The bank's board also approved the issuance of warrants representing a 12.94 percent stake, valued at Rs 729 crore, to investors including Capri Global Ventures, Singularity Large Value Fund, and ICM Finance. Additionally, Jana SFB has reported that GWC has expressed interest in increasing its stake in the bank up to 9.9 percent, subject to approval from the Reserve Bank of India.

TVS Motor Company has also announced that its board has approved the acquisition of a 4.9 percent stake in Jana Holdings for Rs 193.3 crore as part of the TVS Venu Group's proposed investment in Jana SFB. Following this announcement, TVS Motor shares traded under pressure during the session and were down around 5 percent.

The fresh capital infusion is expected to support Jana SFB's expansion and growth plans. Jana SFB shares declined nearly 6 percent to Rs 463.05 after the announcement.