Jana Small Finance Bank, a well-known digitised bank, is about to go public. The small private bank specialises in providing all kinds of standard banking products and services to both urban and rural customers. Jana Bank has launched a UPI QR code-based EMI system and savings accounts through video KYC.
The bank will launch its IPO on February 7, 2024, to raise up to Rs. 570 crore via a fresh issue and an OFS. It will utilise the proceeds to increase its business activities, particularly its loan and investment portfolio. Continue reading this blog to learn about Jana Small Finance Bank Limited IPO and make wise decisions about investing.
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Jana Small Finance Bank Limited IPO Details
The Jana Small Finance Bank IPO will be open for subscription from February 7 to February 9, 2024 (Wednesday to Friday). Investors will need to put their bids between Rs. 393 and Rs. 414/share. More IPO details are provided below:
| IPO Open Date | February 7, 2024 |
| IPO Close Date | February 9, 2024 |
| IPO Listing Date | February 14, 2024 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 393 to Rs. 414 per share |
| Minimum Lot Size | 36 shares |
| Total Issue Size | 13,768,049 shares(aggregating up to Rs. 570.00 Crore) |
| Fresh Issue size | 11,159,420 shares(aggregating up to Rs. 462.00 Crore) |
| OFS Size | 2,608,629 shares of Rs.10(aggregating up to Rs. 108.00 Crore) |
| Listed on | BSE, NSE |
About the Company
Incorporated in 2006, Jana Small Finance Bank is the 4th biggest small finance bank based on deposit size. It was established as ‘Janalakshmi Financial Services Private Limited’ and underwent several changes. The bank started its operations in 2006 as an NBFC and in 2019, it received the licence for a scheduled commercial bank.
The product portfolio of the bank includes secured loan products such as MSME loans, microloans against property, housing loans, loans against fixed deposits, term loans, gold loans, and two-wheeler loans. Additionally, the bank offers other unsecured loan products that include agricultural and allied loans, micro business loans, and group loans for a certain group of women following the Joint Liability Model.
The bank has gained prominence in understanding the needs of underserved and underbanked customers over the last 16 years. It aims to cater to the needs of such customers and implement strategies to further improve its services. As of September 30, 2023, the Jana Bank has served around 1.2 crore customers.
This has however become possible to achieve through digital disbursement of loans and digital sourcing. The bank has successfully established around 771 branches in two union territories and 22 states. Alongside, it has also reached out to customers residing in rural areas and established 278 outlets in those regions.
Jana Small Finance Bank IPO Tentative Timeline
Here you will get to know about the tentative dates associated with Jana Small Finance Bank Limited IPO:
| 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 Small Finance Bank IPO Lot Size
With the launch of Jana Small Finance Bank Limited IPO, investors are allowed to bid for a minimum of 36 shares. Here are some other important details mentioned about minimum and maximum investment for Jana Small Finance Bank Limited IPO lot size:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 36 | Rs. 14,904 |
| Retail (Max) | 13 | 468 | Rs. 1,93,752 |
| S-HNI (Min) | 14 | 504 | Rs. 2,08,656 |
| S-HNI (Max) | 67 | 2,412 | Rs. 9,98,568 |
| B-HNI (Min) | 68 | 2,448 | Rs. 10,13,472 |
Company Financials
Here is a detailed overview of the financial statement of Jana Small Finance Bank Limited:
| Parameters | For the Financial Year Ending (in Rupees Million) | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 2,56,436.91 | 2,01,887.08 | 1,90,786.61 |
| Total Liabilities | 2,26,806.61 | 2,00,498.04 | 1,60,695.86 |
| Total Expenses | 34,439.04 | 30,448.94 | 26,484.81 |
| Revenue | 36,998.75 | 30,623.65 | 27,207.41 |
| Profit After Tax | 38,270.58 | 40,777.52 | 40,544.06 |
| EBITDA | 3,246.60 | 982.86 | 1,549.37 |
Strengths
Before you start investing in an IPO, you must be aware of the strengths and risks involved. The following are the strengths of Jana Small Finance Bank Limited:
- Jana Small Finance Bank leverages technology to identify all possible opportunities along with the products and services to meet the needs of target customers. The back-end operations implement robotic process automation technology to bring improvements in internal turnaround time. The bank aims to provide its customers with fully digitised services through internet banking and mobile banking.
- The bank employs a diverse team of experienced professionals. Many of them had been occupying senior positions in several other banks. Each member of the bank’s higher management has an average of 27 years of experience in financial services.
- Earlier, Jana was a NBFC but now it offers a wide range of diversified products at competitive rates of interest. In just 16 years of operations, it grew from an NBFC to a scheduled commercial bank.
- Jana Small Finance Bank has been serving customers in rural and urban areas for many years. They cater mostly to the needs of customers and the MSME segments. They offer customers multiple options of banking services to meet their requirements.
- Jana Finance Small Bank has leveraged the strength of the “Jana” brand. Since its inception, the bank has rapidly grown its deposit portfolio. The deposit products of the bank include savings accounts, current accounts, term deposits, and recurring deposits. Alongside, it offers attractive rates of interest to senior citizen customers. The deposits have increased by 15.93% as of September 30, 2023.
Also Read: How Can You Analyse An IPO?
Risks Involved
Besides strengths, there are also some risks involved with Jana Small Finance Bank Ltd that you must know before investing:
- Regulatory authorities such as PFRDA, RBI, IRDA, and National Pension System Trust scrutinise the bank’s operations constantly. Any non-compliance with their regulations might lead to adverse effects on the business operations of the company, thereby creating a deep impact on its cash flow and financial health.
- Non-convertible debentures of the company listed on the BSE are subject to stringent rules and regulations. Failing to comply with these rules might create an impact on the financial condition.
- The bank’s illiquidity ratio has grown to 40.24% as of September 2023. This is higher than RBI’s recommended 40% limit. If the bank fails to increase its proportion of liquid assets, it could affect its short-term liabilities.
Also Read: Risk of investing in IPO
Summary
By now, you must have a clear understanding of Jana Small Finance Bank Limited IPO and its strengths and risks involved. Before you decide to invest in this IPO, go through the company’s Red Herring Prospectus (RHP) to gain detailed knowledge. You should also go through the official website and check out all the updated information.
If you want to stay prepared, open a demat and trading account with us to ease the investment procedure.
Frequently Asked Questions
KFin Technologies Limited is the registrar of Jana Small Finance Bank Limited IPO.
The book-running lead managers of Jana Small Finance Bank Ltd IPO are ICICI Securities Limited, Axis Capital Limited, and SBI Capital Markets Limited.
The equity shares of Jana Small Finance Bank Ltd are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The face value of equity shares of Jana Small Finance Bank Limited IPO is Rs. 10 per share.
The price band of Jana Small Finance Bank Limited IPO is Rs. 393 to Rs. 414 for each share.
