Jana Small Finance Bank files for IPO, to raise Rs 700 crore
Jana Small Finance Bank has filed preliminary papers with markets regulator Sebi to float an initial share-sale. The initial public offer (IPO) comprises fresh issuance of equity shares worth Rs 700 crore and an offer for sale of up to 92,53,659 shares by existing shareholders, the draft red herring prospectus (DRHP) filed with Sebi showed.
Those selling shares in the offer-for-sale include Bajaj Allianz Life Insurance Company, Hero Enterprise Partner Ventures, ICICI Prudential Life Insurance Company, Enam Securities, North Haven Private Equity Asia Platinum Pte Ltd, QRG Enterprises and Tree Line Asia Master Fund (Singapore) Pte Ltd. According to merchant banking sources, the IPO is expected to fetch Rs 1,100 crore.
The small finance bank has proposed to utilize the net proceeds from the fresh issue towards augmenting its Tier – 1 capital base to meet future capital requirements.
The proceeds will also be used for meeting the expenses in relation to the offer.
Jana Small Finance Bank said it may consider a pre-IPO placement of an aggregate amount not exceeding Rs 500 crore, including by way of a proposed further issue to its promoters for an amount of up to Rs 400 crore. The pre-IPO placement, if undertaken, will be completed prior to filing of the DRHP with the Registrar of Companies (RoC). In case the pre-IPO placement is undertaken, the amount raised will be reduced from the fresh issue.
The lender serves underbanked customers through various products, including zero balance savings accounts, fixed deposits with attractive interest rates, collateral-free loans and affordable housing loan schemes. It offers loans to MSMEs, agriculture sector, individuals, affordable housing sector and two-wheeler buyers. The small finance bank also provides gold loans to customers.
It is one of the 10 financial institutions to have received an in-principle nod from RBI to function as a small finance bank in 2015. The bank received its final banking licence in April 2017.
Axis Capital, ICICI Securities and SBI Capital Markets have been appointed as merchant bankers to the issue.
