PNB Housing Finance shares listed at Rs 860 on stock exchanges on Monday, marking a premium of 11 percent to the issue price of Rs 775 per share. At around 10.53 am., the share was trading at Rs 882.55, a gain of 13.88 percent over the issue price. Punjab National Bank (PNB), which holds a substantial stake in the company, was up 4.48 percent to Rs 137.50.
The Rs 3,000-crore initial public offering (IPO) of the home loan company was oversubscribed 30 times, though the response to the retail portion was lukewarm at 1.30 times.
The IPO comprised 3.9 crore (39 million) shares to prospective investors at a price band of Rs 750-775 per equity share, between October 25 and 27, 2016.
Shares of other home loan companies were also trading with gains. LIC Housing Finance was up 2.47 percent at Rs 546.90 and Gruh Housing was up 3.59 percent at Rs 329.30, while Indiabulls Housing Finance was trading at Rs 808.70, up 2.48 percent.
The BSE Sensex was up 237 points at 27,511. Top index gainers included Lupin, ITC, State Bank of India and Dr Reddy's Labs.
PNB Housing Finance raised Rs 894 crore from anchor investors by issuing shares at the upper end (Rs 775) of the price band.
For the financial year ended March 31 2016, PNB Housing Finance reported net profit of Rs 326 crore, up 66 percent from Rs 196 crore in the preceding fiscal, while revenues rose 52 percent to Rs 2,697 crore. Assets under management stood at Rs 27,555 crore as of March 31 2016.
Gross non-performing assets (NPAs) and net NPAs stood at 0.22 percent and 0.14 percent, respectively, at the end of financial year 2015-16.
The global coordinators and book running managers for the public issue were Kotak Mahindra Capital Company Limited, DSP Merrill Lynch Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited.