Jana Small Finance Bank Files DRHP With SEBI To Raise Rs 575 Cr Via IPO

With the market regulator Securities and Exchange Board of India (SEBI), Jana Small Finance Bank Limited has submitted its Draught Red Herring Prospectus (DRHP). The company aims to raise funds by issuing equity shares with a face value of Rs. 10 apiece, consisting of a fresh issuance of up to Rs. 575 Cr. and an offer for sale of up to Rs. 4,051,516 by investor-sharing shareholders.

The offer for sale of up to 4,051,516 equity shares comprises of up to 1,757,755 equity shares by Client Rosehill Limited; up to 929,656 Equity Shares by CVCIGP II Employee Rosehill Limited; up to 141,285 Equity Shares by Global Impact Funds, S.C.A., SICAR, Sub-Fund Global Financial Inclusion Fund; up to 825 Equity Shares by Growth Partnership II Ajay Tandon Co-Investment Trust; up to 1,995 Equity Shares by Growth Partnership II Siva Shankar Co-Investment Trust and up to 1,220,000 Equity Shares by Hero Enterprise Partner Ventures.

The net proceeds are proposed to be used to strengthen the Bank's Tier 1 capital base in order to meet the Bank's future capital needs, including those resulting from organic growth and expansion, as well as fulfill any regulatory requirements for an enhanced capital base based on RBI norms.

As of March 31, 2023, Jana Small Finance Bank Limited ranked fourth among Small Finance Banks in terms of AUM and fourth in terms of deposit size, according to Fitch Report. The bank experiences 754 outlets as of March 31, 2023, including 272 in rural areas that were unbanked. These branches were spread over 22 states and two union territories. Since 2008, Jana Small Finance Bank has provided services to almost 12 million customers, including 4.57 million active clients as of March 31st, 2023.

The issue's Book Running Lead Managers are Axis Capital Limited, ICICI Securities Limited, and SBI Capital Markets Limited.