Two new additions in the initial public offering (IPO) aspirants are PNB Housing Finance and Resonance Eduventures. These companies are soon expected to file their draft documents with capital markets regulator Securities Exchange Board of India (SEBI) for their IPOs. Though the prices is not ascertained, PNB Housing Finance and Resonance Eduventures reportedly plan to raise INR25 billion and INR7 billion respectively via public issue.
The proceeds of the IPO will be diverted towards business expansion plans, working capital needs and general corporate purposes.
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Founded in 1988 as a non-banking finance company, PNB Housing Finance is the housing finance subsidiary of Punjab National Bank (PNB). PNB holds 51% stake in PNB Housing Finance while the rest is with private equity firm Carlyle Group. Carlyle became an important shareholder in PNB Housing Finance earlier this year after acquiring 49% stake from financial services firm Destimoney Enterprises Private Limited. Though most of the issue proceeds will be routed towards firm’s lending business, Carlyle might give up some of its holdings in the issue.
For FY2015, PNB Housing Finance had a revenue jump of 60% to INR18 billion while the company’s profit grew nearly 54% to INR1.96 billion. As on March 2015, PNB Housing Finance’s outstanding loan book stood at INR168 billion. Comparing with Canara Bank’s housing loan subsidiary, Can Fin Loans reported a profit of INR 862.4 million in 2015 against INR757.1 million in 2014. As on March 2015, its outstanding loan book was INR72.97 billion.
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Kota-based Resonance Eduventures runs coaching centers for medical and engineering aspirants. Its IPO will comprise of fresh issue and an offer for sale for private investors. Its private investors include CLSA Capital Partners and Quadria Capital, which are expected to partly exit via the IPO. In FY 2010, Resonance received INR600 million from Milestone-Religare Private Equity Fund and INR1 billion from CLSA for 12% stake as private equity infusion. Quadria Capital acquired Milestone Religare PE in 2013. Edelweiss and Citibank are managing the issue.
Resonance Eduventures reported INR4 billion in revenue and INR1 billion in profit for the current FY. At present, the institute has 78 centers in 35 cities across India and plans to use IPO proceeds for expansion of its centers across India.
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Apart from PNB Housing Finance and Resonance Eduventures, Stock Holding and Wadia Group-promoted GoAir are expected to file their IPO papers soon. In 2015, around 38 companies have filed DRHP with SEBI. Total 16 companies have launched IPOs this year while raising INR78 billion. Last year, six IPOs entered the market and collected INR12.61 billion.
