Jana Small Finance Bank (SFB) Receives SEBI Nod To Raise Rs. 575 Cr Via IPO

Jana Small Finance Bank (SFB) has received final approval from the capital market regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The bank submitted a DRHP stating that it would raise funds by offering equity shares at a face value of Rs. 10 apiece, which would include an Offer for Sale (OFS) by "Investor Sharing Shareholders" that would total up to 4,051,516 equity shares and a fresh issuance that could generate up to Rs. 575 crore.

Global Impact Funds, S.C.A., SICAR, Client Rosehill Ltd, CVCIGP II Employee Rosehill Ltd, Sub-Fund Global Financial Inclusion Fund, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust, and Hero Enterprise Partner Ventures are part of OFS segment.

The bank proposed that the net proceeds be used to boost its Tier-1 capital base in order to meet future capital needs, including organic growth and expansion, and to comply with any regulatory requirements for an enhanced capital base as prescribed by RBI.

The issue's book-running lead managers are Axis Capital Limited, ICICI Securities Limited, and SBI Capital Markets Limited.

As of March 31, 2023, Jana Small Finance Bank Limited ranked fourth among small finance banks in terms of AUM and fourth in terms of deposit size, according to the Fitch Report. As of March 31, 2023, the bank operated 754 banking outlets in 22 states and two union territories, including 272 banking outlets in rural areas. Since its founding in 2008, Jana Small Finance Bank has provided services to around 1.2 crore customers, of which 45.7 lakh were active as of March 31, 2023.

Meanwhile, Sebi has also approved DRHP of Shelter Finance, and DOMS Industries to raise funds through initial public offerings (IPOs). The regulator has approved the IPO of Shiva Pharmachem, headquartered in Vadodara, and Onest Ltd., an FMCG company.

According to the DRHP, the Rs 1,800-crore planned IPO of India Shelter Finance consists of an offer for sale (OFS) by investor shareholders for Rs 800 crore and a new issue of equity shares valued at Rs 1,000 crore. Catalyst Trusteeship Ltd., Madison India Opportunities IV, MIO Starrock, Nexus Ventures III Ltd., and Nexus Opportunity Fund II Ltd. are among the companies offloading shares in the OFS.

According to the draft red herring prospectus (DRHP), the initial public offering of DOMS Industries would comprise a new issue worth up to Rs 350 crore and an OFS by promoters worth up to Rs 850 crore. Under the OFS, individual promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani would each sell shares for a total of Rs 25 crore, while corporate promoter F.I.L.A., Fabbrica Italiana Lapis ed Affini S.p.A., will offload shares worth Rs 800 crore.
While Onest's IPO consists of a new issuance of Rs 77 crore and an OFS of up to 32.5 crore shares by a promoter and other selling shareholders, Shiva Pharmachem's IPO is completely an OFS of up to Rs 900 crore by promoters.