PNB Housing Finance IPO subscribed 29.5 times
For the IPO, PNB Housing Finance had set a price band of Rs750-775 per share
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New Delhi: The Rs3,000 crore initial public offering (IPO) of mortgage lender PNB Housing Finance Ltd was subscribed 29.5 times on the last day of the issue on Thursday, data available with the stock exchanges showed.
As of 5.30pm on Thursday, the institutional investor category was subscribed 37.3 times, while the non-institutional category, comprising high net-worth individuals, received bids for 86.1 times the portion reserved for the category. The portion set aside for retail investors, whose investments cannot exceed Rs2 lakh per individual, was subscribed 1.29 times on the final day, the data showed.
For the IPO, PNB Housing Finance had set a price band of Rs750-775 per share, seeking to raise as much as Rs3,000 crore.
The IPO is the second largest this year after ICICI Prudential Life Insurance Co. Ltd’s offering of about Rs6,057 crore—the biggest since the IPO of state-owned Coal India Ltd, the world’s biggest coal miner, which raised Rs15,000 crore in 2010.
Out of the 21 IPOs that hit the Indian primary market in the first nine months of 2016 and went on to list on the exchanges, only six have failed to deliver positive returns to investors on listing.
Things have turned around significantly for the Indian primary market since the start of 2015. In these 21 months, 42 firms have raised Rs32,993.18 crore through the IPO route, data from primary market tracker Prime Database shows.
Punjab National Bank (PNB) holds a 51% stake in its housing finance unit, founded in 1988 as a non-banking financial company. Private equity firm Carlyle Group owns the rest.
Carlyle acquired the stake from Destimoney Enterprises Pvt. Ltd in February 2015.
The mortgage lender will use the proceeds to bolster its Tier-I capital base in order to meet capital requirements.
PNB Housing Finance 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.
The housing finance firm 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.
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