The initial public offering (IPO) of PNB Housing Finance was subscribed 0.2 times on Tuesday with investors bidding for 55.72 lakh shares of the total 2.80 crore shares on offer. The company has priced its initial public offering (IPO) aimed at raising `3,000 crore in a price band of `750 – `775. The company had filed its draft red herring prospectus with market regulator Securities And Exchange Board of India (Sebi) in July this year. Post the issue the stake of PNB will be reduced to around 38% from the current 51%.
Qualified institutional buyers (QIBs) bid for 27.7 lakh shares of the total 79.52 lakh shares on offer, 0.35 times their quota. High net-worth (HNIs) individuals bid for 4.61 lakh shares of the 59.62 lakh shares reserved for them or 0.08 times the quota. Retail investors bid for nearly 0.17 times of their quota or 23.27 lakh shares of the 1.39 crore shares reserved for them. The issue has reserved 2.5 lakh equity shares for the employees at a discount of `75 per share, this category bid for 4,959 shares or 0.02 times of their quota.
On Monday, the company raised `894.19 crore by allotting 1.15 crore shares to anchor investors at a price of `775 apiece. Among the investors who were allotted shares in the pre IPO placement include SBI Life Insurance Company, HDFC Trustee Company, Axis Mutual Fund, Tata Trustee Co, IDFC Imperial Equity Fund, Credit Suisse (Singapore) and Franklin Templeton Mutual Fund.
PNB Housing Finance ended FY16 with revenues of `2,699 crore, up around 51% from previous year’s `1,780 crore. For the year ending March 2016, the company reported
For the year ending March 2016, the company reported net profit of `327.5 crore, up around 68% and total expenses rose by 47.74% at `2,195.2 crore. The company has over 47 branches across the northern, western and southern regions of India and 16 processing hubs. The proceeds of the issue will be used to augment the capital base to meet the future capital requirements, improve distribution network and general corporate purpose.
Kotak Investment Banking, Bank of America Merril Lynch, J M Financial, J P Morgan and Morgan Stanley are the global coordinators and book running lead managers (BRLMs) to the issue. On Tuesday, shares of Punjab National Bank closed at `146.35, down 0.44% on BSE.