Jana Small Finance Bank Refiles DRHP With SEBI For IPO Worth Rs 575 Crore

The IPO consists of a fresh issue of shares of Rs 575 crore and an Offer for Sale (OFS) of more than 40 lakh shares being sold by the bank’s existing shareholders

The bank almost went through its IPO after SEBI approved its preliminary papers in April 2021, but backed down due to the pandemic.

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Jana Small Finance Bank has reapplied to launch its initial public offering (IPO) with the Securities Exchange Board of India (SEBI) on Sunday. The bank has submitted a fresh Draft Red Herring Prospectus (DRHP) with the regulator once more to raise funds through the IPO.

According to a report by PTI,  the IPO consists of a fresh issue of shares of Rs 575 crore and an Offer for Sale (OFS) of more than 40 lakh shares being sold by the bank’s existing shareholders. 

The shareholders offering their shares via the OFS are Client Rosehill Ltd, CVCIGP II Employee Rosehill Ltd, Global Impact Funds, S.C.A., SICAR, 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. 

The bank aims to utilise the net proceeds of the issue to supplement its Tier-1 capital base to help it grow and expand organically in the future. 

According to the DRHP, the bank claims to have served about 12 million customers since 2008, including 4.57 million active customers by March end, 2023. It also reported 754 banking outlets, out of which 272 were located in unbanked rural regions, as of March 2023. 

The lender provides a variety of products and services to its customers, including fixed deposits, zero-balance savings accounts, collateral-free loans, and affordable home loans. It caters to the loan-related demands of MSMEs, the agricultural sector, individuals in need of affordable housing, and two-wheeler buyers. It also deals in gold loans. 

The bank almost went through its IPO after SEBI approved its preliminary papers in April 2021, but backed down due to the pandemic.

Based on its assets under management (AUM) deposit size, a Fitch report classified the bank as the fourth largest small finance bank as of March 2023.