PNB Housing Finance is set to hit capital markets on October 25 with an initial public offering (IPO) to raise upto Rs 3,000 crore.
The housing finance company has fixed a price band of Rs 750-775 per equity share of face value of Rs 10. The issue will close on September 27. The home financier has hired Kotak Mahindra Capital Co. Ltd, DSP Merrill Lynch Ltd, JM Financial Institutional Securities Ltd, JP Morgan India Pvt. Ltd and Morgan Stanley India Co. Pvt. Ltd to manage the IPO.
Know About PNB Housing Finance Ltd
Incorporated in 1988, PNB Housing Finance Ltd, a subsidiary of Punjab National Bank offers housing loans to individuals and corporate bodies for the construction, purchase, repair, and upgradation of houses, as well as loans for commercial space, purchase of residential plots, loan against properties, and loans for real estate developers.
Punjab National Bank (PNB) holds a 51% stake in its housing finance unit, which was founded in 1988 as a non-banking financial company. Private equity firm Carlyle Group owns the rest.
Carlyle acquired the stake from financial services firm Destimoney Enterprises Pvt. Ltd in February 2015.
Post-IPO, PNB will hold approximately 38-39% of the issued and paid-up share capital, while Carlyle’s holding will be around 37%, said Sanjaya Gupta, managing director of PNB Housing Finance Ltd.
The mortgage lender will use the proceeds to bolster its tier-I capital base in order to meet its capital requirements.
PNB Housing has 48 branches and around 800 employees across northern, western and southern regions. Forty percent of its business comes from north India, with south and west both contributing 30% each, said Gupta.
PNB Housing’s loan portfolio grew at a compounded annual growth rate of 61.76% from Rs 3,969.6 crore as of 31 March 2012 to Rs 27,177.2 crore as of 31 March 2016.
As of June 30, 2016, the company’s loan portfolio stood at Rs.30,900.6 crore.
In 2015-16, PNB Housing Finance disbursed loans worth Rs 14,456 crore, as against a disbursement of Rs 9,440 crore in the previous year. As of 31 March 2016, the lender’s loan book stood at Rs 27,177 crore.
In 2015-16, the company’s gross non-performing assets stood at 0.22%.
In 2015-16, it reported Rs 2,699.54 crore revenue, a jump of 51% over Rs 1,780.38 crore in the previous fiscal. During the year, it reported a net profit of Rs 327.56 crore, compared with Rs 194.07 crore in the previous year.
So far in 2016, 21 companies have tapped the capital market through their IPOs. They have together raised about Rs 19, 379.1 crore, as per data from Prime Database, a primary market tracker.
PNB Housing Finance Ltd IPO Issue Detail:
Issue Open: Opens on October 25, 2016 And closes on October 27, 2016
Price Band: Rs. 750 – Rs. 775 Per Equity Share
Total IPO size: Rs3,000 crore
Issue Type: Book Built Issue IPO
Bid Lot: 19 equity shares or multiples thereof
Face Value: Rs. 10 Per Equity Share
Listing At: BSE, NSE