Jana Small Finance Bank Limited IPO

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This institution stands as the fourth largest Small Finance Bank in terms of Assets Under Management (AUM) and deposit size as of September 30, 2023, as reported by a Fitch Report. Since its inception in 2006 and transition to a Small Finance Bank in 2018, it has grown significantly, serving nearly 12 million customers with a strong presence across 22 states and two union territories in India. This network includes 771 banking outlets, of which 278 are situated in unbanked rural centers, highlighting the bank’s commitment to financial inclusion.

Historical Milestones

  • Incorporation: July 24, 2006
  • NBFC Registration: March 4, 2008
  • NBFC-MFI Status: September 5, 2013
  • Small Finance Bank Operations: From March 28, 2018
  • Scheduled Commercial Bank: July 16, 2019

These milestones mark the bank’s evolution and its regulatory advancements, culminating in a broadened service offering and enhanced operational capacity.

Customer Focus and Digital Initiatives

Over 16 years, the bank has developed a deep understanding of the financial needs of its target demographic, leading to significant improvements in customer experience through digital sourcing and loan disbursement innovations. This customer-centric approach is evident in both product offerings and service delivery mechanisms, catering specifically to the underbanked and underserved.

Product Portfolio

The bank’s diverse product range includes both secured and unsecured loan products tailored to meet various financial needs:

  • Secured Loans: Business loans, Micro Loans Against Property (Micro LAP), MSME loans, affordable housing loans, term loans to NBFCs, loans against fixed deposits, two-wheeler loans, and gold loans.
  • Unsecured Loans: Individual and micro business loans, agricultural and allied loans, and group loans based on the Joint Liability Group (JLG) model.

Strategic Outlook

The bank’s strategy of enhancing its secured loan portfolio and focusing on agricultural and allied sectors has led to significant shifts in its gross advances composition, increasing the share of secured advances and agricultural loans. This strategic focus aligns with the bank’s mission to support economic activities in underserved regions, contributing to broader financial inclusion and sustainable development.

In conclusion, the bank’s journey from a non-banking finance company to a leading small finance bank underscores its pivotal role in providing financial services to underserved communities, with a significant focus on digital innovation, customer-centric products, and a strong commitment to financial inclusion.

Objects of the Jana Small Finance Bank Limited 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. Total number of shares are: - Fresh Issues :- 11,159,420 shares OFS : - 2,608,629 Shares.
DRHP of Jana Small Finance Bank Limited IPO
RHP of Jana Small Finance Bank Limited IPO

Jana Small Finance Bank Limited IPO Details:

Open Date: Feb 07 2024
Close Date: Feb 09 2024
Total Shares: 13,768,049
Face Value: ₹ 10 Per Equity Share
Issue Size: 570.00 Cr.
Lot Size: 36 Shares
Issue Price: ₹ 393 - 414 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 14 2024

Promoters And Management:

Subhash Chandra Khuntia is the Part-Time Chairman and an Independent Director of the Bank. He holds a bachelor’s degree in science (honours) in physics from Utkal University, a master’s degree in science in physics, a master’s degree in technology in computer science from the Indian Institute of Technology, Kanpur, a master’s degree in arts in economics from Karnatak University, Dharward, a master’s degree in social policy and planning in developing countries from London School of Economics and Political Science, University of London and a bachelor’s degree in law from Bangalore University. He joined the Indian Administrative Services in 1981. He retired as the chief secretary of Karnataka in 2017. He was earlier Chairman, Insurance Regulatory and Development Authority of India, Secretary, School Education and Literacy in the Ministry of Human Resources Development, Government of India, Special Secretary and Financial Advisor, Ministry of Petroleum and Natural Gas, Principal Secretary, Public Works Department, and Secretary, Finance Department of Government of Karnataka and held various other positions in Government of India and Government of Karnataka. Ajay Kanwal is the Managing Director and Chief Executive Officer of the Bank. He holds a bachelor’s degree in engineering in electronics and telecommunication from the Marathwada University and a master’s degree in management studies from the University of Bombay. He was previously associated with Standard Chartered Bank, India and Singapore. Krishnan Subramania Raman is an Executive Director and Chief Credit and Collection Officer of the Bank. He holds a bachelors’ degree in commerce from the University of Madras and a post-graduate diploma in management from the Indian Institute of Management, Calcutta. He is a certified associate of the Indian Institute of Bankers and is also an associate member of the Institute of Chartered Accountants of India. He has previously worked with Standard Chartered Bank, India as senior manager – investment services, Standard Chartered Bank, Singapore as risk director, Dunia Finance LLC as chief risk officer and Mashreq Bank PSC, UAE as senior vice president.

Financials of Jana Small Finance Bank Limited IPO:

A. Balance Sheet
Particulars ( In Crore ) 2021 2022 2023 6M-FY24
CAPITAL & LIABILITIES
Capital 201 201 325 344
Reserve and Surplus 914 999 1,472 2,225
Deposits 12,316 13,536 16,334 18,937
Borrowings 4,815 4,510 6,277 5,314
Other Liabilities and provisions 832 942 1,235 1,287
Total 19079 20189 25644 28106
ASSETS
Cash and Balances with Reserve Bank of India 2125 1530 1011 977
Balances With banks and Money at call and Short Notice 134 7 1076 35
Investments 4698 5065 5221 5509
Advances 11600 13007 17760 21009
Fixed assets 212 172 128 133
Other Assets 309 408 448 443
Total 19079 20189 25644 28106
B. Profit & Loss Statement
Particulars ( In Crore ) 2021 2022 2023 6M-FY24
Interest Earned 2,498 2,727 3,075 1,864
Other Income 223 336 625 352
Total Revenue 2,721 3,062 3,700 2,216
Interest Expended 1,235 1,337 1,415 876
Operating Expenses 1,047 1,139 1,285 783
Provisions and Contingencies 367 569 744 343
Net Profit 72 17 256 213
No.of Shares 10.45 10.45 10.45 10.45
EPS 6.90 1.67 24.47 20.38
C. Cash Flow Statement
Particulars ( In Crore ) 2021 2022 2023 6M-FY24
Net Profit before Tax 72 17 256 213
Operating profit before working capital changes 536 672 1,078 594
(Increase)/Decrease in investments -829 919 250 -437
(Increase)/Decrease in advances -2,013 -2,021 -5,438 -3,610
Increase/(Decrease) in deposits 2,664 1,220 2,798 2,603
(Increase)/Decrease in other assets -35 -96 -30 12
(Increase)/Decrease in lein marked fixed deposits -14 11 -18 -7
Increase / (Decrease)/ In Other Liabilities & Provision 310 155 234 69
Tax -4 -3 -9 -7
Net cash flow from operating activities 615 859 -1137 -784
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -43 -41 -26 -37
Proceeds from Sale of Fixed Assets 0.27 0.23 0.28 0.28
(Increase)/Decrease of held-to-maturity securities -1223 -1290 -409 147
Net cash flow from investing activities -1266 -1330 -434 110
CASH FLOW FROM FINANCING ACTIVITIES
Net Proceeds from equity shares 0.01 0.69 4 19
Proceeds from issue of compulsorily convertible preference shares 0 0 120 0
Securities premium received 0 65 212 538
Proceeds from issue of Tier II capital bonds 0 50 0 0
Increase / (decrease) in other borrowings 1917 -356 1768 -964
Net cash flow from financing activities 1917 -240 2104 -407
Net Cash Flow 1266 -711 532 -1080

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Jana Small Finance Bank Limited 3,075 256 24.47 16.9 414 4,330
AU Small Finance Bank Limited 8,205 1,428 21.42 26.1 619 41,400
Suryoday Small Finance Bank Limited 1,184 78 7.32 11.3 165 1,750
Credit Access Grameen Limited 3,487 826 52.87 19.0 1,602 25,505
Spandana Sphoorty Financial Limited 1,329 12 1.74 15.2 989 7,039
Bandhan Bank Limited 15,905 2,195 13.62 14.0 221 35,593
Ujjivan Small Finance Bank Limited 4,165 1,100 5.63 9.1 58.6 11,471
Equitas Small Finance Bank Limited 4,162 574 5.16 14.7 102 11,515
Fusion Micro Finance Limited 1,742 387 38.47 12.0 585 5,883
Utkarsh Small Finance Bank Limited 2,505 404 4.51 14.2 61 6,696
* All the data is as per FY23.

Lead Manager of Jana Small Finance Bank Limited IPO:

  1. Axis Capital Limited
  2. ICICI Securities Limited
  3. SBI Capital Markets Limited

Registrar of Jana Small Finance Bank Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Jana Small Finance Bank Limited The Fairway Business Park, #10/1, 11/2, 12/2B, off Domlur, Koramangala Inner Ring Road, Next to EGL, Challaghatta, Bengaluru 560 071 Phone: +91 80 4602 0100 Email: investor.grievance@janabank.com Website: https://www.janabank.com/

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