Jana Small Finance Bank is coming up with its maiden public offer, which will open for subscription on February 7. The issue closes on February 9. The company had received approval for the Rs 570 crore IPO in November last year. Jana SFB boasts of marquee investors including TPG, HarbourVest Group, Amansa Capital, Morgan Stanley and Hero Ventures.
All you need to know about Jana Small Finance Bank IPO:
1) What is the business overview of Jana Small Finance Bank?
Jana SFB is the fourth largest small finance bank in terms of AUM. As of September 2023, it had 771 banking outlets, including 278
banking outlets in unbanked rural centres.
2) What is the industry overview of Jana Small Finance Bank?
Small finance banks offer basic banking services such as payment, accepting deposits and lending to the unserved and the underserved segments of the Indian economy, including small businesses, marginal farmers, micro and small industries, and the unorganized sector. These lenders are focused on serving the customers at the bottom of the pyramid to drive financial inclusion.
3) What is the size of Jana Small Finance Bank IPO?
The IPO includes a fresh equity worth Rs 462 crore and an offer for sale (OFS) of 26.08 lakh shares. Under the OFS, existing investors Client Rosehill, CVCIGP II Employee Rosehill, Global Impact Funds, Growth Partnership and Hero Enterprise Partner Ventures will offload shares.
4) What is the price band for Jana Small Finance Bank IPO?
The company has fixed a price band of Rs 393-414 per share, where investors can bid for 36 shares in one lot and in multiples thereafter.
5) What is the structure of Jana Small Finance Bank IPO?
About 50% of the issue is reserved for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.
6) How is the financial performance of Jana Small Finance Bank?
For the period ended September 2023, total income increased 31% to Rs 2,215 crore, while profit more than doubled to Rs 213 crore. The small banking lender’s gross advances increased from Rs 11,838 crore in FY21 to Rs 18,001 crore in FY23, representing a CAGR of 23.31%, and further increased to Rs 21,347, as of September 2023.
7) What are the objects of Jana Small Finance Bank IPO?
Net Proceeds are proposed to be utilised towards augmentation of Bank’s Tier – 1 capital base to meet bank’s future capital requirements such as organic growth and expansion and to comply with the regulatory requirements for enhanced capital base.
8) What is the current GMP of Jana Small Finance Bank?
The current GMP of Jana Small Finance Bank is around Rs 108 in the unlisted market.
9) Who are the book-running lead managers for Jana Small Finance Bank IPO?
Axis Capital, ICICI Securities and SBI Capital Markets are the book-running lead managers to the issue.
10) When is the share allotment and listing date of Jana Small Finance Bank IPO?
The share allotment for the IPO will be finalised on February 12 and the listing date is fixed as February 14.
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