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Jana Small Finance Bank IPO is a book-built issue of Rs 570.00 crores. The issue is a combination of a fresh issue of 1.12 crore shares aggregating to Rs 462.00 crores and an offer for sale of 0.26 crore shares aggregating to Rs 108.00 crores.
Jana Small Finance Bank IPO opens for subscription on February 7, 2024, and closes on February 9, 2024. The IPO price band is set at ₹393 to ₹414 per share and the minimum lot size for an application is 36 Shares.
Company Summary
This company is one of the leading Small Finance Banks in India in terms of assets under management and deposit size.
The Bank was incorporated on July 24, 2006, and was registered as an NBFC on March 4, 2008. They started operating as a Small Finance Bank with effect from March 28, 2018, and became a Scheduled Commercial Bank on July 16, 2019.
The Bank’s primary unsecured loan products are group loans (loans are offered to a group of women as per the Joint Liability Group (“JLG”) model), agricultural and allied loans, and individual and micro business loans. Further, their primary secured loan products are affordable housing loans, MSME loans, gold loans, loans against fixed deposits, term loans to NBFCs, two-wheeler loans, and micro-housing loans.
Their retail liability products comprise saving accounts (including a digital-only account), salary accounts, current accounts, term deposits (including a digital-only account), and recurring deposits.
They are also a corporate agent for third-party life insurance products, general (non-life) insurance products, and health insurance products, including COVID-19 insurance products.
They also offer point of sales (“POS”) terminals and Payment Gateway services through their merchant acquiring partners.
Company Strengths
Their core banking is supported by integrated multi-channel operations, both on mobile and the Internet. They leverage technology to identify potential opportunities, deliver products and services to their target customers, and improve customer satisfaction and business efficiency.
They have the digital infrastructure, certification, and technical capability to act as sponsor banks for enabling digital payments for financial institutions like cooperative banks/fintech companies.
The average age of their employee base is around 30 years and the staff has adapted to the technology and hands-on with the underwriting, collection, sourcing, and all other functions.
They have the fastest-growing deposit franchise among the Small Finance Banks in Fiscal 2020. Also, they had the third-highest share of retail deposits (comprising retail CASA and retail term deposits) as a percentage of total deposits among all Small Finance Banks as of March 31, 2020
Company Financials:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 28,105.87 | 25,643.69 | 20,188.71 | 19,078.66 |
| Revenue | 2,215.57 | 3,699.88 | 3,062.37 | 2,720.74 |
| Profit After Tax | 213.22 | 255.97 | 17.47 | 72.26 |
| Net Worth | 2,547.11 | 1,777.07 | 1,184.56 | 1,100.77 |
| Reserves and Surplus | 2,225.44 | 1,472.28 | 999.29 | 914.09 |
| Total Borrowing | 5,313.54 | 6,277.46 | 4,509.83 | 4,815.32 |
Amount in crore | ||||
Objectives of the IPO:
The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting their Bank’s Tier–1 capital base to meet their Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses concerning the Offer.
Promoters of the company:
JCL and JHL are the Promoters of the Bank. JCL, along with its nominees, holds 100% of the issued and paid-up share capital of JHL.
IPO details
| IPO Date | February 7, 2024 to February 9, 2024 |
| Listing Date | Wednesday, February 14, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹393 to ₹414 per share |
| Lot Size | 36 Shares |
| Total Issue Size | 13,768,049 shares (aggregating up to ₹570.00 Cr) |
| Fresh Issue | 11,159,420 shares (aggregating up to ₹462.00 Cr) |
| Offer for Sale | 2,608,629 shares of ₹10 (aggregating up to ₹108.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 36 | ₹14,904 |
| Retail (Max) | 13 | 468 | ₹193,752 |
| Small-HNI(Min) | 14 | 504 | ₹208,656 |
| small-HNI(Max) | 67 | 2,412 | ₹998,568 |
| Large-HNI (Min) | 68 | 2,448 | ₹1,013,472 |
Allotment Schedule
| Basis of Allotment | Monday, February 12, 2024 |
| Initiation of Refunds | Tuesday, February 13, 2024 |
| Credit of Shares to Demat | Tuesday, February 13, 2024 |
| Listing Date | Wednesday, February 14, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 9, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
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