1. PNB Housing Fin gets Sebi nod for Rs 2,500 crore IPO

PNB Housing Fin gets Sebi nod for Rs 2,500 crore IPO

PNB Housing Finance has received the approval of capital markets regulator Securities & Exchange Board of India (Sebi) to raise R2,500 crore through an initial public offering.

By: | Mumbai | Published: October 14, 2016 6:08 AM

PNB Housing Finance has received the approval of capital markets regulator Securities & Exchange Board of India (Sebi) to raise R2,500 crore through an initial public offering.

The subsidiary firm of Punjab National Bank had filed its draft red herring prospectus (DRHP) with Sebi in July this year. The markets regulator issued its final ‘observations’ on October 6 on the draft offer documents, which is necessary for any company to launch the public offer.

PNB Housing Finance ended the previous financial year with revenues of Rs 2,699 crore, up around 51% from Rs 1,780 crore a year ago. For the year ending March 2016, the company reported a net profit of Rs 327.5 crore, up 68%.

According to the DRHP, the proceeds of the issue will be used to augment capital base to meet future capital requirements and for general corporate purpose. “We believe that the listing of our equity shares will enhance our visibility and brand name among existing and potential customers,” it said.

At the end of March 2016, PNB had 51% stake in the company. Post IPO, it would “continue to hold approximately 35-37% of the issued and paid-up share capital”, according to the DRHP. The company plans to grow business and loan portfolio by consolidating position in key geographies as well as by expanding into specific target markets.

Kotak Investment Banking, BofA Merril Lynch, JM Financial and Morgan Stanley are the global coordinators and book running lead managers to the issue.

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