Jana Small Finance Bank refiles draft IPO papers with Sebi to raise funds

IPO

Jana Small Finance Bank has re-submitted its draft papers with the Securities Exchange Board of India to raise funds through a public issue.

The initial public offering (IPO) consists of a fresh issue of Rs 575 crore and an offer-for-sale of up to 4.05 million shares by its existing shareholders and promoters. The SFB had filed the draft red-herring prospectus for a proposed Rs 1,200-crore IPO on March 31, 2021. But the company didn't float the issue because of tough market conditions during pandemic.

The OFS in the latest IPO consists of up to 1.76 million shares by Client Rosehill Ltd, up to 0.93 million shares by CVCIGP II Employee Rosehill Ltd, up to 1.22 million shares by Hero Enterprise Partner Ventures and up to 1.44 lakhs shares by Global Impact Funds.

The bank has rebounded sharply after suffering the impact of the Covid pandemic. In FY23, it achieved an impressive net profit of Rs 256 crore, up from Rs 17.47 crore last year. Its non-performing assets too have reduced to 3.94 percent from 5.71 percent a year ago.

Jana SFB has taken measures to reduce its microfinance exposure, which was initially at 95 percent when it started its operations five years ago, and it now stands at 25 percent.

Gross advances growth stood at 35 percent to Rs 18,000 crore, up from Rs 13,000 crore, while deposits stood at Rs 16,334 crore, up 20.7 percent from a year ago. CASA ratio fell to 16.3 percent from 22.52 percent.

The bank has total assets worth Rs 19,600 crore, which encompass home loans, gold loans, and secured business loans. Once the bank successfully completes its listing process, it plans to explore the potential of obtaining a universal banking license, according to news reports.

Axis Capital Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the issue.