Jana Small Finance Bank has recently filed preliminary papers with SEBI to float an initial share-sale. The Initial Public Offer (IPO) comprises of fresh issuance of equity shares worth Rs. 700 crore and an offer for sale of up to 92,53,659 shares by existing shareholders, the Draft Red Herring Prospectus (DRHP) filed with SEBI stated.
Those selling shares in the offer-for-sale include ICICI Prudential Life Insurance Company, Bajaj Allianz Life Insurance Company, Hero Enterprise Partner Ventures, Enam Securities, North Haven Private Equity Asia Platinum Pte Ltd, Tree Line Asia Master Fund (Singapore) Pte Ltd., and QRG Enterprises. According to merchant banking sources, the IPO is expected to fetch Rs. 1,100 crore.
The small finance bank has proposed to utilize the net proceeds from the fresh issue towards augmenting its Tier – 1 capital base to meet future capital requirements. The proceeds will also be used for meeting the expenses in relation to the offer.
Jana Small Finance Bank stated that it may consider a pre-IPO placement of an aggregate amount not exceeding Rs. 500 crore, including by way of a proposed further issue to its promoters for an amount of up to Rs. 400 crore. The pre-IPO placement, if undertaken, will be completed prior to filing of the DRHP with the Registrar of Companies (RoC). In case the pre-IPO placement is undertaken, the amount raised will be reduced from the fresh issue.