Jana Small Finance Bank has filed preliminary documents with market regulator Sebi to initiate a first share sale. The initial public offering (IPO) includes a new issue of shares valued at Rs 700 crore and a sale offer of up to 92 53,659 shares by existing shareholders, showed the draft red herring prospectus (DRHP) filed with Sebi.
Those selling shares in the sale offer include Bajaj Allianz Life Insurance Company, Hero Enterprise Partner Ventures, ICICI Prudential Life Insurance Company, Enam Securities, North Haven Private Equity Asia Platinum Pte Ltd, QRG Enterprises and Tree Line Asia Master Fund ( Singapore) Pte Ltd. According to merchant banking sources, the IPO is expected to bring in Rs 1,100 crore.
The smaller corporate bank offered to use the net proceeds of the new issue to increase its Tier 1 capital base to meet future capital needs.
The proceeds will also be used to cover expenses related to the offer.
Jana Small Finance Bank has stated that it may consider a pre-IPO placement in an aggregate amount not exceeding Rs 500 crore, including through an additional issuance proposal to its promoters for an amount up to Rs 400 crore. The pre-IPO placement, if undertaken, will be completed prior to the filing of the DRHP with the Registrar of Companies (RoC). In the event that the pre-IPO placement is undertaken, the amount raised will be reduced by the new issue.
The lender serves the underbanked customers through a variety of products including zero balance savings accounts, term deposits with attractive interest rates, unsecured loans and affordable home loan programs. It provides loans to MSMEs, the agricultural sector, individuals, the affordable housing sector and buyers of two-wheelers. The small finance bank also provides gold loans to customers.
It is one of 10 financial institutions to have received an agreement in principle from the RBI to operate as a small financing bank in 2015. The bank received its final banking license in April 2017.
Axis Capital, ICICI Securities and SBI Capital Markets have been appointed as investment bankers for the issue.