PNB Housing Finance, a subsidiary of Punjab National Bank, made a strong debut on the bourses on Monday. The stock ended the session at R890.60 apiece, up around 15% over the issue price of R775 after listing at R860. The stock touched an intraday high and low of R904 and R860 respectively. Post listing, the stock commands a market capitalisation of R14,752.10 crore.
The R3,000-initial public offering (IPO) of PNB Housing Finance was subscribed 29.5 times with investors bidding for 82.8 crore shares of the total 2.80 crore shares on offer. Through the issue, Punjab National Bank (PNB) reduced its stake to around 38% from the previous 51%.
On October 24, 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.
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.