Jana Small Finance Bank to launch Rs 570-crore IPO on February 7, announces price band

Jana Small Finance Bank on Friday said it will launch the Rs 570-crore maiden public offer on February 7. The issue, which comprises fresh equity worth Rs 462 crore and an offer for sale (OFS) of 26.08 lakh shares, closes on February 9.

The company, in consultation with book-running lead managers, undertook a pre-IPO placement of over Rs 110 crore, and accordingly, the fresh issue size has been reduced.

Jana Small Finance Bank, which received approval from the regulator in November last year, has fixed a price band of Rs 393-414 per share, where investors can bid for 36 shares in one lot and multiples thereafter.


Under the OFS, existing investors Client Rosehill, CVCIGP II Employee Rosehill, Global Impact Funds, Growth Partnership, and Hero Enterprise Partner Ventures will offload shares.


Net proceeds are proposed to be utilised towards augmentation of the Bank’s Tier–1 capital base to meet the bank’s future capital requirements such as organic growth and expansion and to comply with the regulatory requirements for enhanced capital base.

Jana SFB is the fourth-largest small finance bank in terms of AUM. As of September 2023, it had 771 banking outlets, including 278 banking outlets in unbanked rural centres.

Its primary secured loan products are secured business loans, microloans against property, MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans, and gold loans.

The small banking lender's gross advances increased from Rs 11,838 crore in FY21 to Rs 18,001 crore in FY23, representing a CAGR of 23.31%, and further increased to Rs 21,347, as of September 2023.

Jana SFB boasts marquee investors including TPG, HarbourVest Group, Amansa Capital, Morgan Stanley, and Hero Ventures.

For the period ended September 2023, total income increased 31% to Rs 2,215 crore, while profit more than doubled to Rs 213 crore.

Axis Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers to the issue.

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