India’s Jana Small Finance Bank said on Monday that industrialist Venu Srinivasan-led TVS Venu Group will buy a 5.64% stake in the lender through the issuance of warrants worth 3.17 billion rupees ($32.9 million).
GWC Family Fund Investments, which is a part of TVS Venu, will buy the warrants via a preferential issue at 464.82 rupees apiece.
The issue of warrants is at a 5.3% discount to Jana’s closing price on Friday.
Shares fell 4.7% to 467 rupees after the news.
Jana also approved issuing warrants, making up a 12.94% stake and worth 7.29 billion rupees to investors, including Capri Global Ventures, Singularity Large Value Fund and ICM Finance.
GWC has also expressed interest in buying up to 9.9% in Jana, subject to getting approval from the Reserve Bank of India.
Separately, two-wheeler maker TVS Motor also said it will buy 4.9% in Jana Holdings for 1.93 billion rupees.
($1 = 96.3000 Indian rupees)
Reuters
