BackPNB Housing Finance plans Rs2,500 crore IPO
PNB Housing is expected to give out mandates for its IPO over the next few weeks
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Mumbai: PNB Housing Finance Ltd, the housing finance subsidiary of state-owned Punjab National Bank (PNB), has initiated talks with investment banks for an initial public offering (IPO) that could see the company raise approximately ₹ 2,500 crore ($385 million) from the primary market, according to two people aware of the development.
“The firm has been meeting with banks over the last couple of months and has requested for proposals from investment banks," said the first person mentioned above, requesting anonymity as he is not authorized to speak to the media.
PNB Housing is expected to give out mandates for its IPO over the next few weeks, he added.
Earlier on Monday, IFR Asia reported PNB Housing was planning a $385 million initial share sale.
PNB holds a 51% stake in the firm, which was founded in 1988 as a non-banking finance company. Private sector financial services firm Destimoney Enterprises Pvt. Ltd held the remaining 49%. Destimoney acquired the 49% stake in 2009. In February this year, private equity firm Carlyle Group acquired Destimoney’s 49% stake in PNB Housing.
“While a big chunk of the IPO is expected to be primary fund raise for helping the firm’s lending business, Carlyle might sell some part of its stake through the IPO," said the second person mentioned above.
However, since the talks are at an initial stage, these details are yet to be finalized, he added.
For fiscal 2014-15, PNB Housing reported ₹ 1,776.73 crore in revenue, a jump of 60% over the ₹ 1,116 crore revenue reported the previous year. In 2014-15, the firm reported a profit of ₹ 196.1 crore, compared with ₹ 127.4 crore in the previous year.
As on 31 March 2015, PNB Housing had an outstanding loan book of ₹ 16,819 crore.
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