Jana Small Finance Bank, one of the 10 entities that received the small finance bank (SFB) licence in 2015, filed its draft red herring prospectus with the markets regulator on Thursday for an initial public offering (IPO).
The bank plans to raise fresh capital of up to ₹700 crore through the IPO, while over a dozen existing shareholders will sell part of their shares through an offer for sale. The total size of the IPO would be approximately ₹2,000 crore, said a person aware of the company’s plans.
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The selling shareholders include Bajaj Allianz General Insurance Co. Ltd, ICICI Prudential Life Insurance Co. Ltd, Hero Enterprise Partner Ventures and Enam Securities Pvt. Ltd. Investment firms such as TPG, HarbourVest group, Amansa Capital and Morgan Stanley are also shareholders of the bank. “Our bank proposes to utilize the net proceeds from the Fresh Issue towards augmenting our Bank’s Tier – 1 capital base to meet our Bank’s future capital requirements," the lender said in its DRHP.
Jana was one of the worst affected lenders during the demonetization at the end of 2016. The lender in its DRHP said that its NPAs as a percentage of gross advances have come down from 42.21% as of 31 March 2018 to 2.72% as of 30 September 2020.
Investment banks Axis Capital, ICICI Securities and SBI Capital Markets are advising Jana on its IPO.
