The IPO received bids for 82.96 crore shares
The initial public offer (IPO) of PNB Housing Finance saw strong response from investors. The issue received bids for 82.96 crore shares compared with 2.80 crore shares on offer. The IPO was subscribed 29.55 times. The qualified institutional buyers (QIBs) category was subscribed 37.33 times. The non-institutional investors' category was subscribed 86.17 times. The retail investors category was subscribed 1.35 times.
The bidding for the IPO remained open between 25 October 2016 to 27 October 2016. The price band for the IPO was fixed at Rs 750 to Rs 775 per share.
PNB Housing Finance's issue comprised fresh offer of Rs 3000 crore. Post-IPO, the promoter Punjab National Bank (PNB)'s stake has reduced to 39.1% from existing 51%. The issue includes a reservation of 2.5 lakh equity shares for subscription by eligible employees (not exceeding 5% of post-issue paid up equity share capital) at a discount of Rs 75 per share to the issue price.
Earlier, the company had raised Rs 891.25 crore by selling 1.15 crore shares to a slew of anchor investors ahead of the opening of the IPO. The shares were allotted to the anchor investors at Rs 775 per share, the top end of the Rs 750 to Rs 775 per share price band for the IPO.
The company intends to utilize the net proceeds towards augmenting capital base to meet future capital requirements and general corporate purpose. The company has to strengthen its capital base to support business and assets growth, primarily in housing and non-housing segment, and to ensure compliance with the NHB Directions. The proceeds are expected to be sufficient to satisfy company's Tier-I capital requirements for the FY 2017 and FY 2018.
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PNB Housing Finance is the fifth largest housing finance company (HFC) in India by the size of loan portfolio. The company offers housing loans as well as non-housing loans such as loans against property (LAP), non-residential premises loans (NRPL), lease rental discounting (LRD), and corporate term loans (CTL).
PNB Housing Finance reported a profit after tax (PAT) of Rs 327.57 crore on income from operations of Rs 2699.54 crore in the financial year ended March 2016.
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