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Jana Small Finance Bank gets SEBI’s Approval to float IPO.

Jana Small Finance Bank IPO: Jana SFB has filed preliminary papers with SEBI to float an initial share sale. Jana SFB IPO comprises fresh issuance of equity shares worth Rs 700 crore. … According to merchant banking sources, the IPO is expected to fetch Rs 1,100 crore

Jana Small Finance Bank is a small finance bank active since March 28, 2018. Headquarterd in Bangalore, India. It is a licensed bank under section 22 (1) of the banking regulations Act,1949 Approved by the Reserve Bank of India. Hence, it is as safe as any other commercial bank in India.

The promoter of Jana Small Finance Bank is Jana Capital Limited, which is held by Jana Urban Foundation and other investors. Jana Urban Foundation, previously known as Janalakshmi Social Services, is a Section-8 not-for-profit company registered in June 2006.

Jana reported in November 2019 that the September 2019 quarter was its first profitable quarter since demonetization

In FY18, Jana Small Finance Bank had a net loss of Rs 2,411 crore and in FY19 it had a net loss of Rs 1,949 crore. … The bank, according to RBI’s rules, was required to list by March 27, 2021. “Our bank applied to the RBI for an extension of the listing timeline till March 28, 2022,

Jana Small Finance Bank has received markets regulator SEBI’s go-ahead to raise funds through an initial share sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 700 crore and an offer for sale of up to 92,53,659 shares by existing shareholders, according to the draft red herring prospectus (DRHP).

Those selling shares in the offer for sale include Bajaj Allianz Life Insurance Company, Hero Enterprise Partner Ventures, ICICI Prudential Life Insurance Company, Enam Securities, North Haven Private Equity Asia Platinum Pte Ltd, QRG Enterprises, and Tree Line Asia Master Fund (Singapore) Pte Ltd.

The small finance bank augmenting its Tier-1 capital to meet future capital and later the expenses in relation to the offer. It may consider a pre-IPO of an aggregate amount not exceeding Rs 500 crore. Including by way of a proposed further issue to its promoters for an amount aggregating up to Rs 400 crore.

The pre-IPO placement, if undertaken, will be completed prior to the filing of the red herring prospectus with the Registrar of Companies (RoC). In case the pre-IPO placement is undertaken, the amount raised will be reduced from the fresh issue.

The lender serves underbanked customers through various products, including zero balance savings accounts, fixed deposits with attractive interest rates, collateral-free loans, and affordable housing loan schemes. It offers loans to MSMEs (micro, small and medium enterprises), agriculture, individuals, affordable housing, and two-wheeler buyers, and also provides gold loans to customers.

Axis Capital, ICICI Securities, and SBI Capital Markets are the merchant bankers to the issue.

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Written by Ravi Tilekar


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