1. PNB Housing Finance IPO subscribed 29.5 times on final day

PNB Housing Finance IPO subscribed 29.5 times on final day

The `3,000-crore initial public offering (IPO) of PNB Housing Finance, a subsidiary of Punjab National Bank, was subscribed 29.5 times on the third and final day of bidding, with investors bidding for 82.8 crore shares of the total 2.80 crore shares on offer.

By: | Mumbai | Published: October 28, 2016 6:07 AM

The `3,000-crore initial public offering (IPO) of PNB Housing Finance, a subsidiary of Punjab National Bank, was subscribed 29.5 times on the third and final day of bidding, with investors bidding for 82.8 crore shares of the total 2.80 crore shares on offer. The company has priced its public issue in a price band of R750-R775. Following the issue, the stake of PNB has been reduced to around 38% from the current 51%.

Qualified institutional buyers (QIBs) bid for 29.68 crore shares of the total 79.52 lakh shares on offer, 37.33 times their quota. High net-worth (HNIs) individuals bid for 51.37 crore shares of the 59.62 lakh shares reserved for them or 86.17 times the quota. Retail investors bid for nearly 1.26 times of their quota or 1.74 crore 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 R75 per share, this category bid for 1.10 lakh shares or 0.44 times of their quota.

On Monday, the company raised R894.19 crore by allotting 1.15 crore shares to anchor investors at a price of R775 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 R2,699 crore, up 51% and net profit of R327.5 crore, up 68%. For the year ending March 2016, total expenses rose by 47.74% at R2,195.2 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 to the issue.

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