Jana Small Finance Bank has resubmitted its application for an initial public offering (IPO) after a two-year hiatus caused by the pandemic.
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The IPO is valued at up to $70 million and comprises a fresh issue of shares worth Rs 575 crore and an offer for sale (OFS) of up to 4.1 million shares, according to the draft herring prospectus.
The IPO will be managed by Axis Capital, ICICI Securities, and SBI Capital Markets. Jana Small Finance Bank, based in Bengaluru, began operations as a small finance bank in March 2018.
It had initially filed for an IPO in April 2021 but had to postpone its fundraising plans due to the pandemic.
The Reserve Bank of India (RBI) mandates that all small finance banks must be listed within five years of commencing operations.
Microfinance loans remain the bank’s primary business, constituting around 44.6 per cent of its loan portfolio as of March 31.
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The remaining portion includes secured advances to micro, small, and medium enterprises, loans to non-banking finance companies, and gold loans.
As of March 31, the bank held deposits worth Rs 1,633 crore. Its total gross non-performing assets (NPA) stood at Rs 709 crore, with an NPA ratio of 3.9 per cent, the highest among peers like AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank. The bank’s gross NPA ratio was 6.7 per cent as of March 31, 2021.
Jana’s credit cost for the financial year 2022-23 was reported at 4.8 per cent, higher than the 4.6 per cent and 3.4 per cent recorded in 2021-22 and 2020-21, respectively.
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The resubmission of the IPO application indicates Jana Small Finance Bank’s commitment to accessing the capital market and expanding its operations.
