Jana Small Finance Bank IPO: Jana Small Finance Bank files DRHP for IPO after missing deadline

Kolkata: TPG-backed Jana Small Finance Bank has on Thursday filed its draft red herring prospectus with Securities & Exchange Board of India for an initial public offer, almost a week after missing the listing deadline.

Jana was supposed to be listed on or before March 27, 2021, according to the licensing agreement with Reserve Bank of India.

The bank had applied to the RBI for an extension till March 28, 2022 but the regulator turn it down.

“The RBI may take regulatory action against us, which could include imposition of monetary penalties, revocation of the RBI final approval or such other penal actions”, if it fails to make satisfactory progress towards the listing of equity shares or do not comply with the provisions of the extant RBI guidelines, the bank said in its prospectus.

The regulator has mandated small finance banks to get listed within three years from the date of commencement of our banking business or withing three from reaching a net worth of Rs 500 crore.

Jana received the banking license in 2015 along with nine other financial services firms.

The bank would be looking to raise up to Rs 700 crore through the proposed share sale. The bank may also consider a pre-IPO placement for raising up to Rs 500 crore, the bank said in the prospectus.

The IPO would include an offer for sale of up to 9,253,659 equity shares.

Bajaj Allianz Life Insurance Company, ICICI Prudential Life Insurance, Enam Securities and Hero Ventures will be looking to partly offload their holdings in Jana Small Finance Bank when the bank will float the IPO.

Some 18 existing investors would be looking to sell their holding, the bank said. The selling shareholders includes Gawa Capital, Client Rosehill Ltd, Tree Line Investment Management, North Haven Private Equity Asia Platinum Pte Ltd, QRG Enterprises and Bajaj Allianz General Insurance Company.

North Haven is the biggest shareholder with 8.18% holding who will be looking to sell shares while all the other selling shareholders hold less than 5%.

Promoters hold 42% in the bank while investment firm TPG holds 9.44%. Other investors include HarbourVest, Morgan Stanley and Tata Capital.

The bank’s genesis dates back to 2006 when it was founded as Janalakshmi Financial Services by former Citibank executive Ramesh Ramanathan, who is now non-executive chairman.