Jana Small Finance Bank IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

Jana Small Finance Bank IPO Company Details:

Jana Small Finance Bank Limited (JSFL) is a non-banking finance company which is specialized in providing MSME Loans, term loans to NBFCs, affordable housing loans, two wheeler loans, gold loans and loans against fixed deposits. The bank offers a wide range of unsecured lending products, including group loans, loans for individuals and microbusinesses, and loans for agriculture and related industries.

The bank divides its loan portfolio into three main categories:

• Individual loans for house repair or improvement;
• Individual loans for educational expenses;
• Individual personal loans for debt relief, family obligations, incidental costs, and company needs.

The bank serves both retail and corporate customers by providing digital goods, services, and platforms, such as internet and mobile banking. The gross secured advances of the bank increased significantly between March 31, 2021, and March 31, 2023, from Rs.5,076 Cr. to Rs.9,905 Cr., representing a noteworthy CAGR of 39.69%. By March 31, 2023, JSFL have 754 banking locations spread across 22 states and two union territories. Of those locations, 272 are carefully placed in rural areas that lack access to banks. This widespread presence across the country is a calculated strategic move to reduce the risks associated with concentration. Since its inception in 2008, bank has provided services to around 12 million clients; as of March 31, 2023, and had 4.57 million active clients. The bank has successfully added 0.91 million, 0.51 million, and 0.08 million new customers in the last three fiscal years.

IPO-Note	Jana Small Finance Bank Limited
Rs.393 – Rs.414 per Equity share	Recommendation: Apply for Long Term

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Jana Small Finance Bank IPO Details:

Jana Small Finance Bank IPO Strengths:

• JSFL has Pan-India presence with strong brand recognition.

• The bank has a diversified retail deposit which helped it to decrease its cost of funds from 8.61% in March, 2021 to 7.55% in September, 2023.

• It operates in the expanding small finance industry, where there is a growing need for financial services in neglected markets.

• It has a track record of profitability and good asset quality.

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Jana Small Finance Bank IPO Risk Factors:

• Numerous regulatory bodies, including the RBI, PFRDA, IRDA, and National Pension System Trust, have the right to inspect the business. Failure to abide by these authorities’ observations may have a negative impact on the bank’s operations and business performance.

• If the bank is unable to maintain its non-performing assets or unable to maintain adequate provisioning coverage, its financial conditions could be adversely impacted.

Jana Small Finance Bank IPO Financial Performance:

 

Jana Small Finance Bank IPO Shareholding Pattern:

Particulars		Pre- Issue	Post Issue
Promoters Group		25.23%	23.12%
Others		74.77%	76.88%

Source: RHP, EWL Research

Jana Small Finance Bank IPO Outlook:

JSFL is among the top five small finance banks in terms of share of Retail Deposits among all Small Finance bank as at March, 2023. The bank has shown consistent growth in providing financial services to individuals as well as corporates. The PE of JSFL stands at 16.5x on the upper price band which seems attractive when compared to its peer’s average of 93x. The bank’s financials, strategic positioning, and growth trajectory look good; it is well-positioned to capitalize the growing trend in the SFB sector with its focus on underserved rural and semi-urban markets. Considering the valuations, financials and future growth prospect we recommend investors to apply in the offering for long term perspective.

Jana Small Finance Bank IPO FAQ