PNB Housing Finance has fixed a price band of Rs 750 to Rs 775 for its initial public offering (IPO) of Rs 3,000 crore. The issue is a fresh issue of shares and opens for subscription on October 25. The issue closes on October 27.
PNB Housing has 48 branches and around 800 employees across northern, western and southern regions. Forty percent of its business comes from north India, with south and west both contributing 30% each. The mortgage lender will use the proceeds to bolster its tier-I capital base in order to meet its capital requirements.
In 2015-16, it reported Rs 2,699.54 crore revenue, a jump of 51% over Rs 1,780.38 crore in the previous fiscal. During the year, it reported a net profit of Rs 327.56 crore, compared with Rs 194.07 crore in the previous year. In 2015-16, the company’s gross non-performing assets stood at 0.22%. As of June 30, 2016, the company’s loan portfolio stood at Rs 30,900.6 crore.
Punjab National Bank (PNB) holds a 51% stake in PNB Housing Finance which was founded in 1988 as a non-banking financial company. Private equity firm Carlyle Group owns the rest.