PNB Housing Finance files draft papers for Rs2,500 crore IPO
PNB Housing Finance, promoted by Punjab National Bank, would be using the proceeds from the IPO towards augmenting its capital base
Mumbai: PNB Housing Finance Ltd, the housing finance unit of state-run Punjab National Bank (PNB), on Tuesday filed its draft proposal with the market regulator for a Rs.2,500 crore initial public offering (IPO).
The company 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 share sale.
PNB holds a 51% stake in its housing finance arm, which was founded in 1988 as a non-banking financial company. Private sector financial services firm Destimoney Enterprises Pvt. Ltd held the remaining 49%, which it acquired in 2009. In February this year, private equity firm Carlyle Group acquired Destimoney’s 49% stake in PNB Housing.
Mint reported on 20 October that PNB Housing Finance was planning to raise Rs.2,500 crore through a stock market listing and was in the process of hiring financial as well as legal advisers for the issue.
Post-IPO, PNB would “continue to hold approximately 35-37% of the issued and paid-up share capital”, according to the draft red herring prospectus.
The housing finance company plans to utilize the proceeds to augment its capital base and for general corporate purposes, the draft red herring prospectus said.
PNB Housing Finance plans to grow the business and loan portfolio by consolidating its position in key geographies as well as by expanding into specific target markets such as the affordable housing segment.
For fiscal year 2016, the company reported Rs.2,699.54 crore in revenue, a jump of 51% over the Rs.1,780.38 crore it reported in the previous fiscal year. In FY16, the company reported a net profit of Rs.327.56 crore compared with Rs.194.07 crore in the previous year.
So far in 2016, 13 companies have tapped the capital market through their IPOs. They have together raised close to Rs.8,000 crore, as per data from Prime Database, a primary market tracker.
Last year, 21 firms hit the capital market to raise almost Rs.3,600 crore through the IPO route, the best in five years, data from Prime Database showed.
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