Demand was seen from a combination of investors
including domestic banks, mutual funds, long only funds and even private equity
investors.
NEW DELHI:
The second largest public issue of shares this year by home financier PNB Housing Finance received bids for as much as thirty times
the value of the anchor book on offer, people briefed on the matter said.
The offering by the part-state owned and part-privately-owned issuer was fully subscribed at the top end of the price band of Rs. 750-775 per share, according to these people.
The value of the anchor book on offer is Rs 900 crore.
Demand was seen from a combination of investors including domestic banks, mutual funds, long only funds and even private equity investors.
PNB Housing Finance is raising Rs 3,000 crore through a primary issue of shares, making it the second largest initial public offering this year after ICICI Prudential Life Insurance raised about Rs 6,000 crore in through its public issue in September.
The offering will lead to a 23 per cent dilution for existing shareholders, said Sanjaya Gupta, Managing Director, PNB Housing Finance at a press meet on October 19, in Delhi.
Punjab National Bank and US private equity fund Carlyle are the shareholders of PNB Housing Finance and own 51 per cent and 49 per cent of the company, respectively.
Post the issue, Punjab National Bank’s stake in the home financier will reduce to around 38.8-39.1 per cent and it will cease to be a subsidiary of the state-run lender, Gupta said at the press meet.
Carlyle’s holdings in the company will reduce to between 37-37.5 per cent.
PNB Housing Finance is the fifth largest home loan provider in India. Its loan portfolio grew at a CAGR of 61.76 per cent from about Rs 4,000 crore as of March 31, 2012 to about Rs 27000 crore as of March 31, 2016.
Banks are said to control about 60 per cent of India’s housing finance market which is pegged at Rs 3 lakh crore according to an investor presentation by PNB Housing Finance.
Non-banking finance companies have a 38 per cent share of the market.
The company will issue between 37.8–40 crore shares as part of the offering.
PNB Housing Finance provides loans against property and corporate real estate loans as well, though the mainstay of its business is housing loans for purchase, construction, extension or improvement of residential properties or for purchase of residential plots. Loans against property are said to constitute 18 per cent of its portfolio.
As of June 30, 2016, its gross non-performing asset (NPAs), as a percentage of its total loan portfolio, were 0.27 percent and net NPAs, as a percentage of total loan portfolio, were 0.1 per cent.
The offering by the part-state owned and part-privately-owned issuer was fully subscribed at the top end of the price band of Rs. 750-775 per share, according to these people.
The value of the anchor book on offer is Rs 900 crore.
Demand was seen from a combination of investors including domestic banks, mutual funds, long only funds and even private equity investors.
PNB Housing Finance is raising Rs 3,000 crore through a primary issue of shares, making it the second largest initial public offering this year after ICICI Prudential Life Insurance raised about Rs 6,000 crore in through its public issue in September.
The offering will lead to a 23 per cent dilution for existing shareholders, said Sanjaya Gupta, Managing Director, PNB Housing Finance at a press meet on October 19, in Delhi.
Punjab National Bank and US private equity fund Carlyle are the shareholders of PNB Housing Finance and own 51 per cent and 49 per cent of the company, respectively.
Post the issue, Punjab National Bank’s stake in the home financier will reduce to around 38.8-39.1 per cent and it will cease to be a subsidiary of the state-run lender, Gupta said at the press meet.
Carlyle’s holdings in the company will reduce to between 37-37.5 per cent.
PNB Housing Finance is the fifth largest home loan provider in India. Its loan portfolio grew at a CAGR of 61.76 per cent from about Rs 4,000 crore as of March 31, 2012 to about Rs 27000 crore as of March 31, 2016.
Banks are said to control about 60 per cent of India’s housing finance market which is pegged at Rs 3 lakh crore according to an investor presentation by PNB Housing Finance.
Non-banking finance companies have a 38 per cent share of the market.
The company will issue between 37.8–40 crore shares as part of the offering.
PNB Housing Finance provides loans against property and corporate real estate loans as well, though the mainstay of its business is housing loans for purchase, construction, extension or improvement of residential properties or for purchase of residential plots. Loans against property are said to constitute 18 per cent of its portfolio.
As of June 30, 2016, its gross non-performing asset (NPAs), as a percentage of its total loan portfolio, were 0.27 percent and net NPAs, as a percentage of total loan portfolio, were 0.1 per cent.
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