"This is the first public-private enterprise which is going private by this capital raise of Rs 3,000 crore. If you are going to see what I am lacking, I am only lacking on distribution," Sanjaya Gupta, Managing Director, PNB Housing Finance Ltd told reporters at an interaction here.
PNB Housing Finance the fifth-largest housing finance company with about 48 branches at 32 locations and the rest four are at 85 locations with 250-300 branches, he said.
The company has fixed a price band of Rs 750-775 for its IPO that seeks to raise Rs 3,000 crore. The issue will open on October 25 and close on October 27.
Detailing about the objects of the issue, the RHP document of the company said it will help augment company's tier-I capital base to meet the future capital requirements which are expected to arise out of growth of PNB Housing's business and assets, primary the housing and non-housing loans.
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"Accordingly, the net proceeds are to be utilised for augmenting our company's capital base which will be utilised towards our company's business and growth including towards onward lending, payment of operating expenditure, purchase of assets and repayment of outstanding loans and interest thereon as part of our business activities," read the RHP.
Post IPO, the two promoters of the company, Punjab National Bank (PNB) and Carlyle Group, L P, would together shed around 23.5 per cent stake in PNB Housing.
"Housing market is a little sluggish when it comes to the luxury segment but when it comes about mass housing, in micro housing it is quite all right," he said.
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