Jana Small Finance Bank IPO - Review & Fundamental Analysis

Jana Small Finance Bank IPO

Jana Small Finance Bank’s IPO is worth INR 570 crores. The offer consists of a fresh issue of shares worth INR 462 crores and an offer to sell 26.08 crores of existing equity shares. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges. 

Jana Small Finance Bank IPO – Important Details

Jana Small Finance Bank  IPO DateFebruary 7, 2024 to February 9, 2024
Jana Small Finance Bank  IPO Listing DateFebruary 14, 2024
Jana Small Finance Bank  IPO PriceINR 393-414 per share
Jana Small Finance Bank  IPO Lot Size36 Shares
Jana Small Finance Bank  IPO Total Issue SizeApprox INR 570 crores
Jana Small Finance Bank  IPO Basis of AllotmentFebruary 12, 2024
Jana Small Finance Bank  IPO Initiation of RefundsFebruary 13, 2024
Jana Small Finance Bank  IPO Credit of Shares to DematFebruary 13, 2024
Jana Small Finance Bank  IPO Issue TypeBook Built Issue IPO
Jana Small Finance Bank  IPO Listing AtBSE, NSE

Jana Small Finance Bank Ltd IPO  – Company Profile

Jana Small Finance, the fourth-largest Small Finance Bank in AUM and deposits (per Fitch Report, Sept 30, 2023), operates 771 outlets across 22 states and two union territories. Established in 2008, it has served over 12 million customers, with 4.87 million active as of Sept 30, 2023.

Over 16 years, Jana Small Finance has honed insights into the financial needs of the underbanked. Their journey involves a deep understanding of customer behavior, resulting in enhanced experiences through digital sourcing and loan disbursement initiatives.

They specialize in secured loans like business, micro-loans against property, MSME, housing, term loans, two-wheeler, and gold loans. Unsecured offerings include individual, micro-business, agricultural, and group loans using the Joint Liability Group model, empowering women. 

Jana Small Finance Bank Ltd IPO – Fundamental Analysis

Jana Small Finance Bank’s IPO showcases a bank on a growth path with increasing revenue, a significant rebound in profitability, and an expanding asset base. These financials highlight its potential, making it an appealing option for investors seeking banking sector exposure.

Revenue Growth:

The bank has seen a steady increase in revenue from ₹24,977.28 million in 2021 to ₹30,750.10 million in 2023, indicating solid growth in its core banking operations and an expanding customer base.

Equity Expansion:

Equity has increased from ₹11,148.13 million in 2021 to ₹14,722.77 million in 2023, reflecting the bank’s ability to reinforce its financial foundation through retained earnings or capital infusion.

Profitability:

A dramatic improvement in profit after tax from ₹722.60 million in 2021 to ₹2,559.71 million in 2023 showcases the bank’s remarkable turnaround in profitability, emphasizing operational efficiency and successful strategic initiatives.

Return on Net Worth (RoNW):

RoNW has seen fluctuations, dropping to 1.47% in 2022 but rebounding strongly to 14.40% in 2023, indicating the bank’s growing effectiveness in utilizing shareholders’ equity to generate profits.

Net Asset Value (NAV) per Equity Share:

The NAV per equity share has increased significantly, suggesting an enhancement in the intrinsic value of the bank’s shares, which is a positive indicator for potential investors.

Diluted EPS:

The Diluted EPS experienced a substantial increase to ₹42.64 in 2023, reflecting the bank’s improved earnings capacity on a per-share basis, which is highly attractive from an investment perspective.

Assets and Liabilities:

Total assets have grown impressively, indicating expansion and possibly greater lending and investment activities. However, liabilities have also increased, a common trend for growing banks, necessitating reviewing the bank’s debt management and capital adequacy ratios.

Jana Small Finance Bank IPO Financial Information

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in Million)24,977.2827,265.3530,750.10
Equity (₹ in Million)11,148.1312,00714,722.77
Expenses (₹ in Million)26,484.8130,448.9434,439.04
Profit and Loss After Tax (₹ in Million)722.60174.712,559.71
RoNW (%)6.561.4714.40
NAV per Equity Share (₹)217.00230.41323.23
Diluted EPS only (₹)13.463.2142.64
Total Assets (in millions)190,786.61201,887.08256,436.91
Total Liabilities (in millions)1,79,638.481,89,880.082,10,878.64

Jana Small Finance Bank Ltd IPO Peer Comparison 

Jana Small Finance Bank Limited stands out with a solid RoNW of 14.40% and an impressive EPS of ₹42.64, indicating strong profitability among peers. Its high NAV per equity share highlights its robust financial health relative to other small finance institutions.

CompanyTotal Revenue (₹ in million)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Jana Small Finance
Bank Limited
36,998.7510NA47.4742.6414.4323.23
AU Small Finance
Bank Limited
92,398.731035.4721.8621.7413164.64
Suryoday
Small
Finance Bank Limited
12,811.051024.217.327.324.9149.28
Credit
Access
Grameen Limited
35,507.901032.6652.0451.8216.18326.89
Spandana
Sphoorty
Financial Limited
14,770.3210665.521.741.740.4436.58
Bandhan
Bank
Limited
1,83,732.501016.8713.6213.6211.21121.58
Ujjivan Small Finance
Bank Limited
47,541.861010.155.885.8726.4521.27
Equitas Small Finance
Bank Limited
48,314.641024.214.714.6711.2146.44
Fusion Microfinance
Limited
17,999.701014.6843.2943.1316.67230.74
Utkarsh
Small
Finance Bank Limited
28,042.861013.514.524.5120.2222.33

Jana Small Finance Bank Ltd IPO Objective

The main objective of Jana Small Finance Bank is to augment the company’s working capital needs. It anticipates the benefits of listing on stock exchanges. 

Jana Small Finance Bank Ltd IPO Risks And Challenges

Jana Small Finance Bank risks include banks facing regulatory scrutiny and addressing deficiencies, but potential sanctions risk reputation. Internal compliance management has uncertainties. Non-compliance with SEBI regulations for listed debentures may impact business and financial stability. 

  • The bank, scrutinized by regulatory authorities, needs to improve management and compliance deficiencies. Despite addressing observations, potential sanctions threaten its reputation and financial stability. 
  • They manage internal compliance but need to ensure the absence of control deficiencies. Missing corporate records and regulatory filing irregularities pose risks. Delays and inaccuracies may result in penalties or regulatory actions, impacting cash flows and operations. 
  • Their non-convertible debentures are listed on BSE. Compliance with SEBI regulations is crucial. Non-compliance may lead to penal actions, such as restrictions on further securities issuance and freezing transfers, impacting business and financial stability.

Jana Small Finance Bank IPO – Industry & Market Potential

Scheduled Commercial Banks (SCBs) witnessed a 9.5% CAGR in total credit to reach Rs. 136.8 trillion by March 2023. Deposits grew at a 9.9% CAGR to Rs. 180.4 trillion. Private sector banks outpaced public sector banks in credit and deposit growth, and small finance banks showed high double-digit growth in India.

Small Finance Banks (SFBs) focusing on rural areas show a 35.6% CAGR in deposits from fiscal 2021 to 2023. They prioritize CASA deposits, increasing their share from 30.4% to 38.3% by March 31, 2023, contributing to overall deposit growth.

Scheduled Commercial Banks (SCBs) experienced a 9.5% CAGR in total credit, reaching Rs. 136.8 trillion by March 2023. Deposits grew at a 9.9% CAGR, reaching Rs. 180.4 trillion. Private sector banks surpassed public sector banks, and small finance banks exhibited double-digit growth.

Jana Small Finance Bank IPO – Type of Offer

Jana Small Finance Bank plans a fresh issue of shares, seeking INR 462 crores to augment the company’s capital needs. Additionally, the company proposes an offer for sale, intending to sell 26.08 crore existing shares.

  1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 462 crores. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges. 
  2. Offer for sale: Jana Small Finance Bank is offering to sell 26.08 crore existing shares.

Jana Small Finance Bank Ltd IPO Offer Size

The offer size of Jana Small Finance Bank is INR 570 crores. The offer consists of a fresh issue of shares totaling INR 462 crores and the sale of 26.08 crores of existing equity shares worth INR 108 crores. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges. 

Jana Small Finance Bank IPO Allotment Structure

Jana Small Finance Bank allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

Eligible Employees: A portion of the issue is reserved for eligible employees.

How to apply for a Jana Small Finance Bank  IPO?

To apply for the Jana Small Finance Bank  IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

2. Check for IPO Details: Once your account is active, you can check for the Jana Small Finance Bank  IPO details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Jana Small Finance Bank  Limited’s IPO at Alice Blue [M1] in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Jana Small Finance Bank  IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4. Select the Jana Small Finance Bank  IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Jana Small Finance Bank  IPO.

5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Jana Small Finance Bank  IPO:

Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Jana Small Finance Bank  IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the National Stock Exchange’s (NSE) and Bombay Stock Exchange’s (BSE) official websites. You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Jana Small Finance Bank  IPO Offer Registrar

The registrar for the Jana Small Finance Bank  IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

KFin Technologies Limited

Selenium Tower B, Plot No. 31, 32

Gachibowli, Financial District

Nanakramguda, Serilingampally

Hyderabad, 500 032

Telangana, India

Tel: +91 40 6716 2222

E-mail: [email protected]

Website: www.kfintech.com

Jana Small Finance Bank  IPO FAQs

1. What is the allotment date of the Jana Small Finance Bank  IPO?

The allotment date of Jana Small Finance Bank IPO is February 12, 2024.

2. What is the price band of the Jana Small Finance Bank  IPO?

The price band of the shares issued by the company is INR 393-414 per share.

3. What is the size of the Jana Small Finance Bank  IPO?

Jana Small Finance Bank’s IPO consists of a fresh issue of shares worth INR 462 crores and an offer to sell 26.08 crores of existing equity shares. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges. 

4. What is the listing date of the Jana Small Finance Bank  IPO?

The listing date of Jana Small Finance Bank  IPO is February 14, 2024.

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