Jana Small Finance Bank has filed its draft red herring prospectus (DRHP) and is looking to raise ₹700 crore of capital through a fresh issue of shares as part of its initial public offering.

Additionally, the IPO will also include an offer-for-sale of up to 92.53 lakh equity shares from existing shareholders. These include Alpha TC Holdings, Bajaj Allianz General Insurance, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, Badri Narayan Pilinja and Vallabh Bhanshali.

Also read: Jana SFB: Disbursements almost normal, only micro finance loans lagging

Jana SFB may also consider a pre-IPO placement of up to ₹500 crore, including by way of a proposed further issue to its promoters for an amount up to ₹400 crore and a further issue of equity shares for the remaining amount to the promoters and other investors, the DRHP said.

“We intend to utilise the net proceeds to augment our bank’s Tier-I capital base to meet future capital requirements, which are expected to arise out of growth in our bank’s assets, primarily advances and investment portfolio, and to ensure compliance with applicable RBI regulations and guidelines,” it further said.

Bengaluru-based Jana SFB is one of the 10 entities that had started SFB operations.

The Reserve Bank of India (RBI) guidelines require SFBs to list within three years of their net worth reaching ₹500 crore.

For the half year ended September 30, 2020, Jana SFB reported net profit of ₹82.43 crore.

The book running lead managers for the IPO are Axis Capital, ICICI Securities and SBI Capital Markets.

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