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07 May 2024

Jana Small Finance Bank Limited IPO

Jana Small Finance Bank (JSFB) is the fourth largest Small Finance Bank in terms of AUM and the fourth largest Small Finance Bank in terms of deposit size as of September 30, 2023. As of September 30, 2023, it had 771 banking outlets, including 278 banking outlets in unbanked rural centers, in 22 states and two union territories. The company has served nearly 12 million customers since 2008, including 4.87 million active customers as of September 30, 2023. Its primary secured loan products are secured business loans, micro loans against property ("Micro LAP"), MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans.

Its primary unsecured loan products are individual and micro business loans, agricultural and allied loans and group loans. Jana SFB 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 price band is set at ₹393 to ₹414 per share. The minimum lot size for an application is 36 Shares. 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.

Jana SFB IPO Overview

Detail	Description
IPO Date	February 7, 2024 to February 9, 2024
Listing Date	February 14, 2024
Face Value	₹10 per share
Price Band	₹393 to ₹414 per share
Lot Size	36 Shares
Total Issue Size	13,768,049 shares (aggregating up to ₹570.00 Cr)
Fresh Issue	11,159,420 shares (aggregating up to ₹462.00 Cr)
Offer for Sale	2,608,629 shares of ₹10 (aggregating up to ₹108.00 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	93,430,855
Share holding post issue	104,590,275

Jana SFB IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Wednesday, February 7, 2024
IPO Close Date	Friday, February 9, 2024
Basis of Allotment	Monday, February 12, 2024
Initiation of Refunds	Tuesday, February 13, 2024
Credit of Shares to Demat	Tuesday, February 13, 2024
Listing Date	Wednesday, February 14, 2024
Cut-off time for UPI mandate confirmation	5 PM on February 9, 2024

Jana SFB IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	36	₹14,904
Retail (Max)	13	468	₹193,752
S-HNI (Min)	14	504	₹208,656
S-HNI (Max)	67	2,412	₹998,568
B-HNI (Min)	68	2,448	₹1,013,472

Jana SFB IPO Reservation

Investor Category	Shares Offered	Maximum Allottees
Anchor Investor Shares Offered	4,032,588 (30.00%)	NA
QIB Shares Offered	2,688,392 (20.00%)	NA
NII (HNI) Shares Offered	2,016,294 (15.00%)
bNII > ₹10L	1,344,196 (10.00%)	2,667
sNII < ₹10L	672,099 (5.00%)	1,333
Retail Shares Offered	4,704,687 (35.00%)	130,685
Total Shares Offered	13,441,961 (100%)

Jana SFB IPO Promoter Holding

Share Holding Pre Issue	25.20%
Share Holding Post Issue

Jana SFB IPO Anchor Investors Details

Bid Date	February 6, 2024
Shares Offered	4,032,588
Anchor Portion Size (In Cr.)	166.95
Anchor lock-in period end date for 50% shares (30 Days)	March 13, 2024
Anchor lock-in period end date for remaining shares (90 Days)	May 12, 2024

Company & Financials

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,
(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.

Jana Small Finance Bank Limited Financial Information

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	28,105.87	25,643.69	20,188.71	19,078.66
Revenue	2,215.57	3,699.88	3,062.37	2,720.74
Profit After Tax	213.22	255.97	17.47	72.26
Net Worth	2,547.11	1,777.07	1,184.56	1,100.77
Reserves and Surplus	2,225.44	1,472.28	999.29	914.09
Total Borrowing	5,313.54	6,277.46	4,509.83	4,815.32
Amount in ₹ Crore

Key Performance Indicator

KPI	Values
ROE	16.78%
Debt/Equity	3.49
RoNW	14.40%
P/BV	1.28

	Pre IPO	Post IPO
EPS (Rs)	27.4	40.77
P/E (x)	15.11	10.15

Objectives of Jana SFB IPO

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

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.

FAQs for Jana SFB IPO

What is the issue size of Jana Small Finance Bank Ltd IPO?

Jana Small Finance Bank Ltd IPO, which opens for subscription from 07-Feb-2024 to 09-Feb-2024 has an issue size of ₹570 crore. The issue type is book building issue.
What are the open and close dates for Jana Small Finance Bank Ltd IPO?

Jana Small Finance Bank Ltd IPO Opens for subscription from 07-Feb-2024 to 09-Feb-2024.
What is the lot size and minimum order quantity of the Jana Small Finance Bank Ltd IPO?

The lot size of Jana Small Finance Bank Ltd is 36 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14904 and ₹193752 respectively.
What are the allotment dates for the Jana Small Finance Bank Ltd IPO?

Allotment date for Jana Small Finance Bank Ltd is 12-Feb-2024 and refund of application amount (in case allotment is not received) will begin from 13-Feb-2024. If your allotment goes through, then shares will be credited in your Demat account by 13-Feb-2024.
Where is the Jana Small Finance Bank Ltd IPO getting listed?

The shares of Jana Small Finance Bank Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).