Jana Small Finance Bank was incorporated on July 24, 2006. From March 28, 2018, they started operating as a Small Finance Bank and later on July 16, 2019, they became a Scheduled Commercial Bank. The company holds an in-depth knowledge of the financial requirements of underserved and underbanked customers over the past 16 years.
Jana Small Finance Bank offers secured and unsecured loan products, including secured business loans, term loans, affordable housing loans, MSME loans, loans against fixed deposits, two-wheeler loans, microloans against property, gold loans, agricultural and allied loans, group loans, etc. After becoming a Small Finance Bank, the bank started focusing on increasing the secured gross advances to diversify their advances, and in the unsecured advances, the focus was on agricultural and allied loans.
Jana Small Finance Bank Limited IPO Details
Jana Small Finance Bank Limited IPO Date
The IPO of Jana Small Finance Bank Limited is open for subscription from February 7, 2024 to February 9, 2024.
Jana Small Finance Bank Limited IPO's Price Band
Jana Small Finance Bank Limited’s IPO is a fresh issue IPO of up to ₹570 crore. It is a book-building issue. The price range is set to ₹393 to ₹414 per share.
Jana Small Finance Bank Limited IPO’s Lot Size
The lot size for Jana Small Finance Bank Limited’s IPO is 36 shares with a minimum investment of ₹14,904.
Jana Small Finance Bank Limited IPO’s Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Enhancing Tier-1 Capital Base: The primary objective is to strengthen the Tier-1 capital base by utilising the net proceeds generated from the Fresh Issue. This move aims to ensure the Bank's compliance with regulatory requirements and position it well for future capital needs.
- Meeting Offer Expenses: Another goal is to allocate the proceeds from the Fresh Issue to cover the expenses associated with the IPO. This includes various costs related to the offering process, such as underwriting fees, legal expenses, and other transaction-related charges.
- Listing Benefits: The Bank anticipates reaping the advantages of having its Equity Shares listed on the Stock Exchanges. This can include increased visibility, improved liquidity, and enhanced access to the capital markets.
Peer Details
Jana Small Finance Bank faces competition from publicly listed companies like
- AU Small Finance Bank Limited
- Suryoday Small Finance Bank Limited
- CreditAccess Grameen Limited
- Spandana Sphoorty Financial Limited
- Bandhan Bank Limited, which are operating in the same business.
How To Check the Allotment Status of Jana Small Finance Bank Limited’s IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Jana Small Finance Bank Limited
Registered office: The Fairway Business Park, #10/1, 11/2, 12/2B, off Domlur, Koramangala Inner Ring Road, Next to EGL, Challaghatta, Bengaluru 560 071, Karnataka, India
Contact Person: Lakshmi R N (Company Secretary and Compliance Officer)
Phone: +91 80 4602 0100
E-mail: investor.grievance@janabank.com
Jana Small Finance Bank Company Financials
| Particulars | Year ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Assets Under Management | 2,01,018.01 | 1,53,473.37 | 127,705.26 |
| AUM Growth (%) | 30.98% | 20.18% | NA |
| CASA Ratio (%) | 20.21% | 22.52% | 16.29% |
| Gross NPA (%) | 3.94% | 5.71% | 7.25% |
| Profit After Tax (PAT) | 2,559.71 | 174.71 | 722.60 |
| Net Interest Margin (%) | 7.73% | 7.32% | 8.36% |
| Cash & Cash Equivalents | 20,668.82 | 15,349.14 | 22,461.92 |
| Return on Average Equity (%) | 16.78% | 1.53% | 6.51% |
| Basic EPS (₹) | 47.47 | 3.44 | 14.25 |
Know before investing
Strengths
3The company’s gross advances rose from ₹1,18,389.82 million as of March 31, 2021, to ₹1,80,007.41 million as of March 31, 2023, representing a CAGR of 23.31%.
The gross secured advances of the company grew from ₹50,760.00 million as of March 31, 2021, to ₹99,047.54 million as of March 31, 2023, representing a CAGR of 39.69%,
As of March 31, 3023, they are the fourth largest Small Finance Bank in terms of deposit size and AUM.
Risks
3The company offers unsecured loans and it comes with a higher credit risk if the customer defaults on the loan. This may impact the business of the company.
There are certain criminal and tax-related legal proceedings against the company. If these cases do not end in favour of the company, it can impact the business negatively.
If the If the loan customers transfer their loans to other banks or financial institutions, the company may not be able to meet the expected interest income from the loans. loan customers transfer their loans to other banks or financial institutions, the company may not be able to meet the expected interest income from the loans.
