Jana Small Finance Bank refiles IPO application with SEBI for Rs 575 cr issue

Jana Small Finance Bank refiles IPO application with SEBI for Rs 575 cr issue

Jana Small Finance Bank, an Indian lender, has resubmitted its application for an initial public offering, two years after it withdrew its previous plan due to the pandemic. Local market regulations require the bank to go public this year. The IPO comprises a fresh issue of shares worth up to Rs 575 crore and an offer for sale of up to 4.1 million shares, as stated in the draft herring prospectus. Axis Capital, ICICI Securities, and SBI Capital Markets will serve as the book running lead managers for the Bengaluru-based bank’s IPO.

Jana Small Finance Bank began operating as a small finance bank in March 2018 and filed for an IPO in April 2021, which had to be postponed due to the pandemic. The Reserve Bank of India mandates that all small finance banks must list within five years of commencing operations.

Regarding asset quality, as of March 31, the bank’s total gross non-performing assets (NPA) stood at 7.09 billion rupees, a decrease from Rs 757 crore the previous year, with an NPA ratio of 3.9%, the highest among peers like AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank. The bank’s gross NPA ratio was 6.7% as of March 31, 2021.

Jana Small Finance Bank’s 2021 IPO application

In 2021, the bank’s issue comprised 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. The IPO was expected to fetch Rs 1,100 crore.

(With agency inputs.)