#pnb housing finance
PNB Housing Finance files draft red herring prospectus for IPO
The leading housing finance firm would be using the proceeds from the share sale mainly towards augmenting its capital base.
MUMBAI: PNB Housing Finance. the housing finance arm of public sector lender Punjab National Bank has submitted a draft red herring prospectus in the run up to its planned initial public offering (IPO).
In May, Usha Ananthasubramanian, managing director of PNB had said that it intends to lower their stake to 51% in the profitable housing finance company.
However the bank would still retain its majority shareholding in the housing finance entity. According to media reports the company plans to raise around Rs 2000 crore through the offering.
PNB which had suffered a historic loss of Rs 5000 crore in the fourth quarter of FY16 is planning to raise some funds by liquidating its share in its housing finance subsidiary.
The company has appointed Kotak Investment Banking. Bank of America Meryll Lynch, JM Financial, JP Morgan, Morgan Stanley and Link Intime as investment bankers for the IPO.
The draft red herring prospectus says that the company has emerged as the fifth largest housing finance company in India.
Its total loan portfolio as on March 31 of this year stood at Rs 27,177 crore and generated revenue worth Rs 2700 crore.
The company operates through 47 branches and 16 operating hubs as of end of FY16.