1. PNB Housing Finance IPO subscribed 0.57 times on day 2

PNB Housing Finance IPO subscribed 0.57 times on day 2

The `3,000 crore initial public offering (IPO) of PNB Housing Finance was subscribed 0.57 times on day two with investors bidding for 1.61 crore shares of the total 2.80 crore shares on offer.

By: | Mumbai | Published: October 27, 2016 6:14 AM

The `3,000 crore initial public offering (IPO) of PNB Housing Finance was subscribed 0.57 times on day two with investors bidding for 1.61 crore shares of the total 2.80 crore shares on offer. The company has priced its public issue in a price band of `750–`775. Post the issue the stake of PNB will be reduced to around 38% from the current 51%.

Qualified institutional buyers (QIBs) bid for 73.43 lakh shares of the total 79.52 lakh shares on offer, 0.92 times their quota. High net-worth (HNIs) individuals bid for 8.23 lakh shares of the 59.62 lakh shares reserved for them or 0.14 times the quota. Retail investors bid for nearly 0.57 times of their quota or 79.36 lakh shares of the total 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 33,136 shares or 0.13 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, among others.

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The company has over 47 branches across the northern, western and southern regions of India and 16 processing hubs. The company ended FY16 with revenues of `2,699 crore, up 51% and net profit of `327.5 crore, up 68%. For the year ending March 2016, total expenses rose by 47.74% at `2,195.2 crore. 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 Wednesday, shares of Punjab National Bank (PNB) closed at `144, down 1.61% on BSE.

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