Jana Small Finance Bank Limited IPO (Jana SFB IPO) Detail

Jana SFB IPO [Jana Small Finance Bank Limited IPO] is a book built issue of Rs 570.00 crores. The issue is a combination of fresh issue of 1.12 crore shares aggregating to Rs 462.00 crores and offer for sale of 0.26 crore shares aggregating to Rs 108.00 crores.

Jana SFB IPO opens for subscription on February 7, 2024 and closes on February 9, 2024. The allotment for the Jana SFB IPO is expected to be finalized on Monday, February 12, 2024. Jana SFB IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, February 14, 2024.

Jana SFB IPO price band is set at ₹393 to ₹414 per share. The minimum lot size for an application is 36 Shares. The minimum amount of investment required by retail investors is ₹14,904. The minimum lot size investment for sNII is 14 lots (504 shares), amounting to ₹208,656, and for bNII, it is 68 lots (2,448 shares), amounting to ₹1,013,472.

Axis Capital Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book running lead managers of the Jana SFB IPO, while Kfin Technologies Limited is the registrar for the issue.

Refer to Jana SFB IPO RHP for detailed information.

Jana SFB IPO [Jana Small Finance Bank Limited IPO] Details

IPO DateFebruary 7, 2024 to February 9, 2024
Listing Date[.]
Face Value₹10 per share
Price Band₹393 to ₹414 per share
Lot Size36 Shares
Total Issue Size13,768,049 shares
(aggregating up to ₹570.00 Cr)
Fresh Issue11,159,420 shares
(aggregating up to ₹462.00 Cr)
Offer for Sale2,608,629 shares of ₹10
(aggregating up to ₹108.00 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue93,430,855
Share holding post issue104,590,275

Jana SFB IPO Reservation

Investor CategoryShares Offered
QIB Shares OfferedNot more than 50% of the Net Issue
Retail Shares OfferedNot less than 35% of the Net Issue
NII (HNI) Shares OfferedNot less than 15% of the Net Issue

Jana SFB IPO Timeline (Tentative Schedule)

Jana SFB IPO opens on February 7, 2024, and closes on February 9, 2024.

IPO Open DateWednesday, February 7, 2024
IPO Close DateFriday, February 9, 2024
Basis of AllotmentMonday, February 12, 2024
Initiation of RefundsTuesday, February 13, 2024
Credit of Shares to DematTuesday, February 13, 2024
Listing DateWednesday, February 14, 2024
Cut-off time for UPI mandate confirmation5 PM on February 9, 2024

Jana SFB IPO Lot Size

Investors can bid for a minimum of 36 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

ApplicationLotsSharesAmount
Retail (Min)136₹14,904
Retail (Max)13468₹193,752
S-HNI (Min)14504₹208,656
S-HNI (Max)672,412₹998,568
B-HNI (Min)682,448₹1,013,472
Lot Size Calculator

Jana SFB IPO Promoter Holding

The Promoters of the company are Jana Capital Limited and Jana Holdings Limited.

Share Holding Pre Issue25.20%
Share Holding Post Issue

About Jana Small Finance Bank Limited

Incorporated in July 2006, Jana Small Finance Bank Limited is a non-banking finance company primarily engaged in providing MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans.

Jana SFB offers various unsecured loan products, including individual and micro business loans, agricultural and allied loans, and group loans.

The bank classifies loans into three categories:

(i) individual loans for home improvement/repair,

(ii) individual loans for school fees, and

(iii) individual personal loans for debt consolidation, family functions, incidental expenses, and business purposes.

The company provides digital products, services, and platforms, such as mobile and internet banking for both retail and corporate clients. Between March 31, 2021 and March 31, 2023, the bank’s gross secured advances increased from ₹50,760.00 million to ₹99,047.54 million, representing a compound annual growth rate (CAGR) of 39.69%.

As of March 31, 2023, Jana SFB had 754 banking outlets across 22 states and two union territories, including 272 in unbanked rural centers. This pan-India presence has helped the bank to reduce its concentration risk.

The bank has provided services to almost 12 million customers since 2008. As of March 31, 2023, there are 4.57 million active customers. In the last three fiscal years, the bank has added 0.91 million, 0.51 million, and 0.08 million new customers, respectively.

As of March 31, 2023, Jana SFB had a total of 18,184 permanent employees.

Jana Small Finance Bank Limited Financial Information (Restated)

Jana Small Finance Bank Limited’s revenue increased by 20.82% and profit after tax (PAT) rose by 1365.12% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended30 Sep 202331 Mar 202331 Mar 202231 Mar 2021
Assets28,105.8725,643.6920,188.7119,078.66
Revenue2,215.573,699.883,062.372,720.74
Profit After Tax213.22255.9717.4772.26
Net Worth2,547.111,777.071,184.561,100.77
Reserves and Surplus2,225.441,472.28999.29914.09
Total Borrowing5,313.546,277.464,509.834,815.32
Amount in ₹ Crore

Key Performance Indicator

The market capitalization of Jana SFB IPO is Rs 4330.04 Cr.

KPIValues
ROE16.78%
Debt/Equity3.49
RoNW14.40%
P/BV1.28

Check Jana SFB IPO Peer Comparison here.

Pre IPOPost IPO
EPS (Rs) 27.440.77
P/E (x) 15.1110.15

Note:

  • The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2023 that is available in RHP.
  • The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of September 30, 2023 that is available in RHP.

Objects of the Issue (Jana SFB IPO Objectives)

The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting the Bank’s Tier – 1 capital base to meet the Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer. The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.

Jana SFB IPO Review (Apply)

[Dilip Davda]  This SFB is the fourth largest financial service provider in India and has posted remarkable growth in its performance. No doubt, it marked a setback in margins for FY22 in line with general trends for the industry on account of the Pandemic. Based on annualized FY24 earnings, the issue appears reasonably priced. Investors may park funds for the medium to long term rewards.

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