Jana Small Finance Bank Limited

About Jana Small Finance Bank Limited  Incorporated in 2006, Jana Small Finance Bank Limited is the fourth largest small finance bank in terms of AUM (Assets Under Management) and deposit size as of 30 September 2023. It offers secured business loans, microloans against property, MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans and gold loans. Meanwhile, under unsecured loan products, it offers individual and micro business loans, agricultural and allied loans, and group loans.  The bank is also a corporate agent for third-party life insurance products, general (non-life) and health insurance products, including COVID-19 insurance products. It delivers its products and services through banking outlets and ATMs, business correspondents, ATM cum debit cards, mobile banking platforms, internet banking portals and SMS alerts.  As of 30 September 2023, it had 771 banking outlets, including 278 banking outlets in unbanked rural centres, in 22 states and two union territories. Since 2008, it has served nearly 12 million customers, of which 4.87 million customers are active as of 30 September 2023.Between FY21 and FY23, it saw a CAGR rise of 7% in its interest earned. Additionally, the advances and deposits in the small finance bank industry are projected to increase at a CAGR of 33% to 44% between FY23 and FY25, which could benefit the bank.And now, Jana Small Finance Bank Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to augment the bank’s Tier–I capital base, increase lending and meet the expenses in relation to the Offer. Its shares will be listed on the NSE and the BSE.  Here are key details about the Jana Small Finance Bank Limited IPO:     Company Name  Jana Small Finance Bank Limited   Company Type  Private    Company Established On  2006   Jana Small Finance Bank Limited IPO Opening Date  February 7, 2024    Jana Small Finance Bank Limited IPO Closing Date  February 9, 2024   Jana Small Finance Bank Limited IPO Allotment Status  February 12, 2024    Credit of Shares to the Demat Account  February 13, 2024   Jana Small Finance Bank Limited IPO Listing Date  February 14, 2024    Jana Small Finance Bank Limited IPO Face Value  ₹10 per share   Jana Small Finance Bank Limited IPO Lot Size  36 Shares    Jana Small Finance Bank Limited IPO Issue Size  ₹570.00 Cr   Jana Small Finance Bank Limited IPO to be Listed on  BSE, NSE    Jana Small Finance Bank Limited IPO Price band  ₹393 to ₹414 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q2FY24    Revenue  ₹ 2497 crore  ₹ 2,726 crore  ₹ 3,075 crore  ₹ 1,863 crore    Net Profit/Loss  ₹ 72.2 crore  ₹ 17.4 crore  ₹ 255 crore  ₹ 213 crore              Here’s a quick look at Jana Small Finance Bank Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   The majority of its services are available in digital form to customers.  Integrated risk and governance framework with 367 credit employees as of 30 September 2023, who conduct field verification as part of the credit underwriting process.  More than 16 years of experience in serving underbanked and underserved customers.  Strong brand recognition with a pan-India presence of 771 banking outlets in 22 states and two union territories as of 30 September 2023.  It has a fast-growing retail deposits base with a 9% CAGR rise between FY21 and FY23.  Proven execution ability as it launched gold and MSME loans in FY18; affordable housing loans, secured business loans and loans against fixed deposit in FY19; and two-wheeler loans in FY21.   Risks and threats   Subject to RBI, PFRDA, IRDA and National Pension System Trust inspections  Subject to stringent regulatory requirements and prudential norms.  A high illiquidity ratio of 40% as of 30 September 2023 indicates its inability to pay its debt obligations and short-term liabilities.  42% of its total gross advances are unsecured loan advances as of 30 September 2023.  Subject to interest rate risk.  Many of its customers do not have any credit history making up 16% of the total gross advances as of 30 September 2023.  Had negative cash flows of ₹1,137 crore in FY23 and ₹783 crore for the half year ended 30 September 2023.            Jana Small Finance Bank Limited IPO details  |Jana Small Finance Bank Limited IPO date  According to the offer document filed by the company with the SEBI, the Jana Small Finance Bank IPO’s opening date – in other words, the Jana Small Finance Bank IPO launch date – will be 7th February 2024. The Jana Small Finance Bank IPO closing date is 9th February 2024. After this, investors will be updated about the allotment status on 12th February 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 13th February 2024. The Jana Small Finance Bank IPO listing date is 14th February 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Jana Small Finance Bank Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Jana Small Finance Bank IPO price band has been set between ₹393 and ₹414 per share. Interested investors can choose a price within this band to apply for the IPO.  The Jana Small Finance Bank IPO listing price will be determined on 14th February 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Jana Small Finance Bank Limited IPO Lot size  The Jana Small Finance Bank IPO details have been declared. The Jana Small Finance Bank IPO lot size is set at 36 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Jana Small Finance Bank IPO issue size is approx ₹570 crore.          How to pre-apply for the Jana Small Finance Bank Limited IPO?  You can pre-apply for the Jana Small Finance Bank Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Jana Small Finance Bank Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Jana Small Finance Bank Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Jana Small Finance Bank Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Jana Small Finance Bank Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Jana Small Finance Bank Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Jana Small Finance Bank LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Jana Small Finance Bank Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Jana Small Finance Bank Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Jana Small Finance Bank Limited IPO  To apply for the Jana Small Finance Bank Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Jana Small Finance Bank Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Jana Small Finance Bank Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.