M&A

M&A

TVS, others in talks to invest Rs.700-Cr in Jana Small Finance Bank

Economic Times  

Bengaluru-based Jana Small Finance Bank is to raise funds through a mix of primary and secondary share transactions. The bank is in talks with investors, includi ng the TVS Venu Group, which plans to acquire a 10% stake in the lender for about Rs.450-Cr. The overall fundraising is expected to reach Rs.700-Cr. TPG Capital, an existing part ner, is reportedly looking to reduce its holding in the bank by up to 5%.Founded as Janalakshmi Financial Services, Jana SFB provides basic banking services to underserved segments across India, alongside general retail and commercial banking. It is the fourth-largest small finance bank by gross loan portfolio and is currently categorised as a universal bank aspirant.The company plans to use the capital to support its growth and business operations.This transaction represents the first equity raise for the bank since its public listing in February 2024.

Between May 2007 and Aug 2022, Jana Small Finance Bank had attracted about $792-M from Lok Capital, Michael & Susan Dell Foundation, Bellwether, Tree Line Asia, TRG Global Private Equity, GAWA Microfinance Fund, India Financial Inclusion Fund, Morgan Stanley, Tata Capital Growth Fund, TPG Capital, British International Investment, IFC, HarbourVest, MEMG Family Office, Amansa Capital and others.For FY25, Jana Small Finance Bank had reported about Rs.4,710-Cr in Operating Income and about Rs.501-Cr in PAT.