Nod for Jana Small Finance Bank's IPO
Jana Small Finance Bank has received markets regulator Sebi’s go-ahead to raise funds through an initial share-sale.
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New Delhi: Jana Small Finance Bank has received markets regulator Sebi's go-ahead to raise funds through an initial share-sale.
The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 700 crore and an offer for sale of up to 92,53,659 shares by existing shareholders, according to the draft red herring prospectus (DRHP). Those selling shares in the offer for sale include Bajaj Allianz Life Insurance Company, Hero Enterprise Partner Ventures, ICICI Prudential Life Insurance Company, Enam Securities, North Haven Private Equity Asia Platinum Pte Ltd, QRG Enterprises and Tree Line Asia Master Fund (Singapore) Pte Ltd.
The small finance bank, which filed preliminary IPO papers with Sebi in April, obtained its observations on July 9, an update with Sebi showed on Monday. Sebi's observations are necessary for any company to launch public issues like IPO, follow-on public offer (FPO) and rights issue. According to merchant banking sources, the IPO is expected to fetch Rs 1,100 crore. Going by the draft papers, the small finance bank proposed to utilise the net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet future capital requirements. Further, the proceeds will also be used for meeting the expenses in relation to the offer. Jana Small Finance Bank may also 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 aggregating up to Rs 400 crore. The pre-IPO placement, if undertaken, will be completed prior to filing of the red herring prospectus with the Registrar of Companies (RoC).
