PNB Housing Finance IPO opens 25 October, price band INR750-775


PNB Housing IPOPNB Housing Finance IPO will open for subscription on 25 October and will close on 27 October.  Through the upcoming IPO, the company plans to raise INR3,000 crore (INR30 billion) by selling shares in the price band of INR750-775 per share. In its red herring prospectus, the company said the upcoming IPO will involve a reservation of 250,000 shares for eligible employees. Shares of the housing finance company will be listed on BSE and NSE. Listing of PNB Housing Finance shares is expected on 7 November.

PNB Housing Finance IPO – Use of proceeds

The company plans to use the IPO proceeds to augment its capital base and for working capital requirements.

From the house of PNB

PNB Housing Finance is promoted by India’s Punjab National Bank (PNB) which also owns 51% equity stake in the company. The rest is owned by American private equity giant Carlyle which it received through the acquisition of Destimoney Enterprises’ acquisition in February 2015. None of the companies are selling their shares in the offer and thus, the upcoming IPO will not have an offer for sale (OFS) component.

PNB Housing Finance is a national player with a network of 47 branches and 16 processing hubs, including a Central Support Office (CSO) in New Delhi as of 31 March 2016. In addition to its own footprint, PNB Housing Finance approaches customers through more than 5,000 channel partners across different locations in India. PNB Housing is the fifth largest housing finance player in India after Housing Development Finance Corporation (HDFC), LIC Housing Finance, Indiabulls Housing Finance and Dewan Housing Finance.

Read Also: What makes PNB Housing IPO interesting?

Stunning growth even in testing times

The company has stunned market observers with strong growth in its business operations. From revenues of just INR461 crore in FY2012, the company has grown to a top line of INR2,699 crore in FY2016, it said in its IPO prospectus. In the same timeframe, its profit after tax (PAT) surged from INR77.4 crore to INR327.5 crore. These are impressive figures even though buyers are shying away from buying real estate currently. Despite the testing times, PNB Housing’s gross NPAs stood at just 0.22% of its total loan portfolio in FY2016 and 0.2% in FY2015.

As always, IPO Central will review the IPO in the coming days. Meanwhile, head to the discussion page on PNB Housing IPO to see and participate in a lively discussion about the offer.


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