Jana Small Finance Bank (SFB) will launch its initial public offering (IPO) on Wednesday, February 7, 2023. The private lender is offering its shares in the price band of Rs 393-414 apiece. Interested bidders can bid for a minimum of one lot of 36 shares and its multiples thereafter. The three-day bidding process for the issue will conclude on Friday, February 9.
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Incorporated in July 2006, Jana Small Finance Bank is engaged in providing MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans. The Bengaluru-based lender offers a wide range of banking services.
The IPO includes sale of fresh equity shares worth Rs 462 crore. Existing shareholders will offload up to 26,08,629 shares from their stake via offer-for-sale (OFS). At the upper end of the price band, the lender is looking to raise a total of Rs 570 crore via IPO. Jana SFB has reserved shares worth Rs 13.50 crore for its eligible employees.
Client Rosehill, CVCIGP II Employee Rosehill, Global Impact Funds, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust and Hero Enterprises Partner Ventures are key investors participating in OFS. The anchor book for the issue will open on Tuesday, February 6.
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The net proceeds from the fresh issue shall be utilised towards augmenting its Tier-I capital base to meet the future capital requirements and meeting the expenses in relation to the offer. Proceeds from the OFS would go to the selling shareholders.
Ahead of its IPO, the lender opted for a pre-IPO placement of 24,39,607 equity shares at an issue price of Rs 414 apiece. Investors included SBI General Insurance, Kotak Mahindra Life Insurance, Ananta Capital Ventures Fund, Arka Nxt Ventures, Capri Global Holdings and RPM Ventures Partners.
Jana SFB has reserved 50 per cent of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) quota is set at 15 per cent of shares. Retail investors will have 35 per cent of the net issue reserved for them.
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Axis Capital, ICICI Securities and SBI Capital Markets are the book running lead managers of the Jana Small Finance Bank IPO, while Kfin Technologies Limited is the registrar for the issue. Shares of the lender are likely to be listed on February 14, Wednesday on both BSE and NSE.
