PNB Housing Fin debuts at Rs 860/share, up 11% over issue price

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26 Aug, 2025 12:21

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Shares of PNB Housing Finance has made stock market debut at Rs 860 per share, up 11 percent from its issue price of Rs 775.  Issue price of Punjab National Bank’s subsidiary was fixed at Rs 750-755 per share and was open for subscription October 25-27.  The housing finance company has raised Rs 3000 crore through the issue, making it second largest issue of 2016 after ICICI Prudential Life Insurance’s Rs 6057-crore IPO.  Around 22 IPOs have hit markets this year so far.The issue was oversubscribed by 29.55 times, including Rs 894 crore raised from anchor investors.Before issue, PNB held 51 percent stake remaining 49 percent stake was held by Destimoney Enterprises, which is owned by Carlyle Group’s Quality Investments Holdings. Post IPO, its parent company PNB will reduce its stake to approximately 38-39 percent of issued share capital. Hence, PNB Housing Finance won't remain either a subsidiary of PNB or a government company. However after the issue, PNB will still be its single largest shareholder with 26 percent or 33 percent holding of the post-issue equity share capital.The finance company aims to utilise proceeds of the issue to augment capital base to meet future capital requirements and for general corporate purpose. As of June 30, 2016, its' Tier I capital is 8.40 percent of the risk weighted assets.

Accordingly, a portion of the funds raised will be used for improving capital base for business and growth including towards onwards lending, payment of operating expenditure, purchase of assets and repayment of outstanding loans and interest.

As of June 30, 2016, its non-housing loans constituted 29.69 percent of our total loan portfolio and our retail non-housing loans accounted for 78.27 percent of our total non-housing loan portfolio. The average loan size (at origination) of our retail non-housing loans as of June 30, 2016 was Rs 56.8 lakh, with a weighted average LTV ratio (at origination) of 46.49 percent.

Posted by Nasrin SultanaFollow @NasrinzStory