New Delhi: Having secured markets regulator Sebi’s nod, PNB Housing Finance is likely to launch the initial public offering (IPO) to raise Rs2,500 crore as early as next month.
The leading housing finance firm had filed IPO papers with Sebi in July and got final approval last week.
“The board will meet soon to finalise the dates. The IPO is likely to hit markets in November,” an official told PTI. With over two decades of specialised experience in housing finance, PNB Housing has a robust network of branches and provides housing loans to individuals and corporates for construction, purchase, repair and upgradation of houses. It also provides loans for commercial space, loan against property and loan for purchase of residential plots.
“We plan to list the company to enhance our visibility and brand name among existing and potential customers,” the official added.
PNB Housing Finance would be using the proceeds from the share sale mainly towards augmenting its capital base. The company plans to raise up to Rs2,500 crore through the initial share sale and a portion would be reserved for the employees.
Promoted by Punjab National Bank which holds 51% stake, PNB Housing Finance commenced operations in 1988. Its stake will come down to around 35-37% post the share dilution in the IPO.
So far in 2016, as many as 22 companies have hit the markets with initial public offering, the largest being ICICI Prudential Life Insurance’s Rs6,057-crore IPO.
For the year ended March 2016, PNB Housing Finance reported a profit after tax of Rs327.57 crore while revenue from operations stood at Rs2,699.54 crore in the same period.
Kotak Investment Banking, BofA Merrill Lynch, JM Financial, JP Morgan and Morgan Stanley are the global coordinators and book running lead managers for the proposed issue.
The company plans to grow business and loan portfolio by consolidating position in key geographies as well as by expanding into specific target markets such as the affordable housing segment.