IPO price band fixed at Rs 750 to Rs 775 per share
The initial public offer (IPO) of PNB Housing Finance is scheduled to open tomorrow, 25 October 2016. The issue closes on Thursday, 27 October 2016. The price band for the IPO has been fixed at Rs 750 to Rs 775 per share.
The issue comprises fresh offer of Rs 3000 crore. Post-IPO, the promoter Punjab National Bank (PNB)'s stake will reduce 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.
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.
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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