Jana SFB files DRHP for Rs 575-cr issue

Bengaluru-based lender Jana Small Finance Bank has filed a Draft Red Herring Prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI), for an Initial Public Offering (IPO).

The bank has resubmitted papers two years after pulling its previous plan due to the pandemic, and the last year it could remain private according to local market regulations, according to reports.

The offer consists of a fresh issue of up to ₹575 crore and an offer-for-sale of up to 4,051,516 equity shares by investor-sharing shareholders, according to the draft herring prospectus.

Also read: Jana SFB raises ₹560-cr capital at discount to earlier rounds

A total of 4,051,516 equity shares are up for sale, with 1,757,755 of those coming from Client Rosehill Ltd, 929,656 from CVCIGP II Employee Rosehill Ltd, and 141,285 from Global Impact Funds, S.C.A., SICAR, and Sub-Fund Global Financial Inclusion Fund. Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust, and Hero Enterprise Partner Ventures will offer shares up to 825 equity shares, 1,995 equity shares, and 1,220,000 equity shares, respectively.

Further, the bank’s net IPO proceeds are proposed to be used to increase its Tier-1 capital base in order to meet its future capital needs, such as organic growth and expansion, and  to satisfy any regulatory requirements for an enhanced capital base that the RBI may from time to time impose.

The issue’s book-running lead managers are Axis Capital Ltd., ICICI Securities Ltd., and SBI Capital Markets Ltd. The registrar is KFin Technologies Ltd.

Jana Small Finance Bank Ltd currently ranks fourth among Small Finance Banks in terms of both AUM and deposit size as of March 31, 2023. The bank has 754 locations, including 272 in rural, unbanked areas spread across 22 states and two union territories. Since 2008, Jana SFB has served about 12 million customers, 4.57 million of whom were active as of March 31, 2023.