Jana Small Finance Bank raises ₹560 crore from Damani, Kacholia, others: Report

Jana Small Finance Bank has raised ₹560 crore from a set of investors including high net-worth individuals (HNIs) and funds in pre-IPO financing, a report said.

The bank raised the money from investors like Enam Holdings' Akash Bhanshali, Ashish Kacholia, DMart owner Radhakishan Damani and Akash Prakash’s Amansa Holdings participated, Economic Times reported.

The fresh fundraise will strengthen the Bengaluru-based bank’s capital adequacy to more than 19% from just above the regulatory requirement of 15% at the end of March, the report added.

In an interview with the newspaper, CEO Ajay Kanwal said the bank will file a draft prospectus for the public issue as early as next month. The IPO will consist of a sale of at least ₹1,500 crore worth of shares by the lender.

He added that the more than ₹500 crore of the amount raised from the IPO will be a fresh issue of shares which would come directly into the bank and improve its capital adequacy above 23%.

Other bank shareholders include private equity firms TPG Capital, Morgan Stanley Private Equity, Havells Group all of whom own more than 9% stake.

After listing, the bank will be the fifth small finance bank on the bourses.

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