Janashakthi to chart new growth wave via Rs. 5 b IPO

From left: First Capital Advisory Services CEO Tharusha Ekanayake, JXG Group Managing Director/CEO Ramesh Schaffter, Chairman Chandan de Silva, Founder and Chairman Emeritus C. T. A. Schaffter, Deputy CEO Dilshan Wirasekara and Deputy Chairman Prakash Schaffter – Pic by Ruwan Walpola 

• Sets aside Rs. 4 b for return into general insurance, new acquisitions, local and global expansion in NBFI segment
• IPO opening on 9 April to offer 21.74% stake amounting to 500 m shares at Rs. 10 each
• Independent valuation by Deloitte places JXG per share valuation at Rs. 15.92 suggesting IPO price is at 37.18% discount and with 50% upside

Integrated financial services conglomerate Janashakthi Ltd., (JXG) yesterday unveiled its next growth wave to be powered by the Rs. 5 billion Initial Public Offering (IPO).

The IPO, which opens on 9 April offers 500 million shares or a 21.74% stake in the family owned entity at 

Rs. 10 per share.

JXG comprises four listed companies including First Capital Holdings PLC, Janashakthi Insurance PLC and Janashakthi Finance PLC.

The Company intends to utilise nearly Rs. 4 billion from IPO to expand and diversify its financial services footprint through strategic entry and expansion across the General Insurance, Microfinance and Non-Bank Financial Institutions (NBFI) sectors, as well as foray into South Asia and Africa. Balance Rs. 1 billion will be utilised to retire debt, optimise the capital structure and enhance financial flexibility.

Managing Director and Group CEO Ramesh Schaffter said, JXG is of the view that market conditions have improved to re-enter general insurance which it exited in 2018 selling its non-life business to Allianz for a staggering Rs. 16.4 billion. 

Noting that General Insurance re-entry will be this year, he added that JXG still owns rights to highly successful products such as Full Option.

In terms of overseas expansion, Schaffter listed Commonwealth-nations in Eastern and Southern Africa as well as Bangladesh, as likely markets for life insurance and capital market solutions. He said that all initiatives are subject to regulatory approvals.

“The IPO is a significant milestone for our next growth phase. We are committed to accelerate the transformation of financial services like Janashakthi did when it came to life insurance over 30 years ago,” Schaffter emphasised.

The independent valuation by Deloitte Sri Lanka places JXG’s per share value at Rs. 15.92 positioning the IPO at a 37.18% discount to the valuation.

JXG Deputy CEO and First Capital Managing Director Dilshan Wirasekara expressed confidence in the IPO being oversubscribed comfortably and noted that the discount to the valuation also means a potential 50% upside.

The company in a statement noted, as JXG becomes a listed company, it commits to setting high standards of transparency to shareholders, regulators, and the public. The Board already benefits from strong independent oversight, with five Independent Non‑Executive Directors.

JXG Chairman Chandan De Silva said: “The launch of our IPO is a historic step in JXG’s journey. It provides the capital to expand our financial services, go global, and strengthen the balance sheet. Importantly, listing strengthens the commitment to transparency, accountability and governance to all stakeholders. The offering demonstrates JXG’s confidence in Sri Lanka’s future and our purpose of reimagining wealth to empower individuals and businesses.”