Jana Small Finance Bank Reapplies for $70 Million IPO with Updated Documents.

Jana Small Finance Bank

Jana Small Finance Bank is back on track with its plans for an initial public offering (IPO) after facing a two-year delay caused by the pandemic. The IPO is valued at an impressive $70 million and includes a fresh issuance of shares worth Rs 575 crore, along with an offer for sale (OFS) of up to 4.1 million shares, as mentioned in the draft herring prospectus.

To manage the IPO, Jana Small Finance Bank has enlisted the expertise of Axis Capital, ICICI Securities, and SBI Capital Markets. The bank, headquartered in Bengaluru, embarked on its journey as a small finance bank in March 2018.

Jana Small Finance Bank

Originally, the bank had filed for an IPO in April 2021. Unfortunately, the fundraising plans had to be put on hold due to the pandemic’s disruptions. However, now, with renewed confidence, Jana Small Finance Bank has resubmitted its IPO application, signaling its readiness to make a splash in the capital market.

The Reserve Bank of India (RBI) has set a requirement for all small finance banks to be listed within five years of starting their operations. Jana Small Finance Bank falls under this mandate, prompting its move towards IPO listing.

As of March 31, microfinance loans constitute a significant portion, accounting for about 44.6 per cent of the bank’s loan portfolio. The remaining portion encompasses secured advances to micro, small, and medium enterprises, loans to non-banking finance companies, and gold loans.

Additionally, the bank reported holding deposits worth Rs 1,633 crore by the end of March 31. However, it also disclosed a total gross non-performing assets (NPA) of Rs 709 crore, resulting in an NPA ratio of 3.9 per cent, which is the highest among its peers, such as AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank. As of March 31, 2021, the bank’s gross NPA ratio was recorded at 6.7 per cent.

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Jana’s credit cost for the financial year 2022-23 was reported at 4.8 per cent, slightly higher than the figures recorded in the preceding years of 2021-22 (4.6 per cent) and 2020-21 (3.4 per cent).

Despite the challenges faced during the pandemic, Jana Small Finance Bank remains steadfast in its commitment to accessing the capital market and expanding its operations. With the IPO back on track, the bank is poised for growth and aims to make a mark in the dynamic financial landscape.

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