TVS Venu Group to acquire 5.64% stake in Jana Small Finance Bank
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TVS Venu Group’s GWC Family Fund Investments will buy a 5.64% stake in Jana Small Finance Bank via warrants worth 3.17 billion rupees ($32.9m) at 464.82 rupees per warrant (a 5.3% discount), and Jana approved additional warrants equal to a 12.94% stake worth 7.29 billion rupees to other strategic investors. Jana shares fell 4.7% to 467 rupees after the announcement, GWC may raise its holding to 9.9% pending RBI approval, and TVS Motor will separately acquire a 4.9% stake in Jana Holdings for 1.93 billion rupees, signalling fundraising and expansion in financial services but mixed market sentiment.
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India’s Jana Small Finance Bank said on Monday that the TVS Venu Group, led by industrialist Venu Srinivasan, will acquire a 5.64% stake in the lender through the issuance of warrants worth 3.17 billion rupees ($32.9 million).
The investment will be made through GWC Family Fund Investments, which is part of the TVS Venu Group.
The entity will subscribe to the warrants through a preferential issue priced at 464.82 rupees per warrant.
The issue price represents a discount of 5.3% compared to Jana Small Finance Bank’s closing share price on Friday.
Following the announcement, shares of Jana Small Finance Bank declined 4.7% to 467 rupees.
Jana approves additional warrant issuance
Apart from the investment by GWC Family Fund Investments, Jana Small Finance Bank also approved the issuance of additional warrants to other investors.
The lender said it would issue warrants representing a 12.94% stake worth 7.29 billion rupees to investors including Capri Global Ventures, Singularity Large Value Fund, and ICM Finance.
The move forms part of the bank’s broader capital-raising exercise aimed at bringing in strategic and financial investors.
The company also disclosed that GWC Family Fund Investments has expressed interest in increasing its holding in Jana Small Finance Bank to as much as 9.9%, subject to regulatory approval from the Reserve Bank of India.
TVS Motor to buy stake in Jana Holdings
Separately, TVS Motor Company said it will acquire a 4.9% stake in Jana Holdings for 1.93 billion rupees.
The transaction further expands the TVS Venu Group’s presence in the financial services sector.
The TVS Venu Group is the private business conglomerate led by Venu Srinivasan and managed alongside his son, Sudarshan Venu.
The group represents the family-owned enterprises originating from the broader TVS Group.
Its business interests span automotive manufacturing, sustainable mobility, financial services, and real estate operations.
TVS Venu Group expands financial services presence
The TVS Venu Group operates in more than 80 countries and includes businesses such as TVS Motor Company, TVS Credit Services, and TVS Emerald.
TVS Motor Company is India’s third-largest two-wheeler manufacturer and has expanded its presence in electric mobility through products such as the iQube Electric scooter.
Meanwhile, TVS Credit Services has emerged as a major non-banking financial company focused on two-wheeler and consumer durable financing.
The conglomerate has also expanded its footprint in the financial services sector through investment management activities, including the acquisition of the Indian mutual fund and asset management business of PGIM India.
The group said it continues to focus on scaling businesses across mobility, financial services, real estate, and lifestyle sectors, with an emphasis on technology, quality, and innovation,
At the time of writing, the shares of TVS Motor on the National Stock Exchange were trading at 3,366.90 rupees, down 2.88% from the previous closing price.
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