Jana Small Finance Bank IPO: From financials to key risks, here are 10 things to know from RHP before investing
- Jana Small Finance Bank IPO: From financials to key risks, here are 10 must-know points from RHP. The IPO opened for subscription today (Wednesday, February 7) and will close on Friday, February 9.
Jana Small Finance Bank IPO: The Jana Small Finance Bank's is set to start its Initial public offerings (IPO) this week. The IPO opens for subscription on Wednesday, February 7 and will close on Friday, February 9.
Here are 10 Key things to know from the RHP
Jana Small Finance Bank IPO Details
The IPO opens for subscription on Wednesday, February 7 and will close on Friday, February 9.
The company has fixed the Jana Small Finance Bank IPO price band at ₹393 to ₹414 per equity share.
The Jana Small Finance Bank IPO investors can apply for 36 equity shares and multiples thereof.
Jana Small Finance Bank IPO is an Offer for Sale of ₹462 crore (Rs4,620 Million) and an offer for sale consisting of 2,608,629 equity shares.
Around 50 percent of the issue is reserved for Qualified Institutional Buyers (QIB), not less than 35 percent of the issue is reserved for retail investors and not less than 15 percent for NII investors.
In the wake of the T+3 listing rule, Jana Small Finance Bank's IPO allotment date is most likely on 12th February 2024.
Jana Small Finance Bank shares will list on BSE, NSE with tentative listing date fixed as Wednesday, February 14, 2024.
In the Offer for sale component the Selling shareholders in the Jana Small Finance Bank include Client Rosehill Limited, CVCIGP II Employee Rosehill Limited, Global Impact Funds, S.C.A., SICAR, sub-fund Global Financial Inclusion Fund, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust, Hero Enterprise Partner Ventures
Objectives of the issue
The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting the Bank's Tier - 1 capital base to meet the Bank's future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer. The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
About Jana Small Finance Bank
Jana Small Finance Bank Limited is a non-banking finance company primarily engaged in providing MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans.
Jana Small Finance Bank offers various unsecured loan products, including individual and micro business loans, agricultural and allied loans, and group loans.
Jana Small Finance Bank Financials
The company witnessed its revenue increase by 20.82 percent and profit after tax (PAT) rise by 1365.12 percent between the financial year ending with March 31, 2023 and March 31, 2022.
The total revenues at ₹3699.9 crore during Fy23 have grown 16.6% CAGR since FY21. The Net profit has grown 88.2% CAGR between FY21-FY23.
Net Interest Margins at 7.7% in FY23 were stable and at 7.8% during first half FY24.
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Jana Small Finance Bank details and key highlights
Jana Small Finance Bank is 4th largest SFB in India in terms of AUM and deposit size as at September 30, 2023 with a focus on growing secured advances, highlighted the company.
Jana Small Finance Bank has consistently growing customer base spread across product categories.
Total Active Customers base has grown at 18.6% CAGR (Compound Annual growth Rate) from 3.2 million in FY21 to 4.9 million at the end of First Half FY22.
Jana Small Finance Bank has witnessed growth in its lending operations. The Disbursement have grown 39.4% CAGR between FY21- FY23 and during first half FY24 are up 29.1% to ₹8420 crore.
Jana Small Finance Bank Peers
Jana Small Finance Bank peers include ESAF Small Finance Bank, Ujjivan Small Finance Bank , Equitas Small Finance Bank , Suryoday Small Finance Bank.
Jana Small Finance Bank disbursements at ₹8480 crore during first half FY24 were higher than ESAF's , Ujjivan's, Equitas, Sarvoday's disbursements ranging between ₹7850- ₹2790 Crore
Jana Small Finance Bank IPO Promoters and Management
Jana Small Finance Bank IPO promoters are Jana Capital Limited and Jana Holdings Limited
Subhash Chandra Khuntia is the Part-Time Chairman and Independent Director of Jana Jana Small Finance Bank. While Ramalingam Ramaseshan is the Non-Executive Independent Director, Ajay Kanwal is Managing Director & Chief Executive Officer and Krishnan Subramania Raman is Executive Director and Chief Credit and Collections Officer. Other Non-Executive Independent Directors include Chitra Talwar, Kumbla Srinivas Nayak, Pammi Vijaya Kumar, Ramesh Ramanathan, Rahul Khosla
Jana Small Finance Bank IPO registrar book running manager
KFin Technologies Limited has been appointed as the official registrar of the book build issue.
Axis Capital Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book running lead managers of the Jana SFB IPO.
Jana Small Finance Bank IPO GMP:
The shares Jana Small Finance Bank are currently available at ₹66 apiece in the grey market, as per investorgain.com
Jana Small Finance Bank IPO Key Risks
Jana Small Finance Bank is subject to inspections by various regulatory authorities, such as the RBI, PFRDA, IRDA and National Pension System Trust. Non-compliance with the observations of such regulators could adversely affect its business, financial condition, results of operations and cash flows.
Jana Small Finance Bank is subject to stringent regulatory requirements and prudential norms
Jana Small Finance Bank is subject to restrictions relating to the Equity Shares as per the RBI In-Principle Approval, RBI Final Approval, SFB Licensing Guidelines and SFB Operating Guideline
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