indiabulls housing finance fund raising home loans real estate puravankara share price net profit sales revenues flats apartments construction real fund raising money rupees
Bengaluru-based real estate developer Puravankara Projects reported a steep fall in net profit for the quarter ended June 2016, causing its share price to drop more than 4 percent on Monday. In Picture: Labourers are silhouetted against the setting sun as they work at the construction site of a residential building in the southern Indian city of Hyderabad October 5, 2012 (representational image).Reuters file

PNB Housing Finance Ltd. is coming out with a public issue of equity shares aggregating up to Rs. 2,500 crore. The home loan company filed the necessary documents with the capital markets regulator on Tuesday (July 5).

The company will be reserving a portion of the initial public offering (IPO), not exceeding 5 percent of the post-issue paid up equity capital, for its eligible employees, according to the draft prospectus. 

The price band, discount if any, for retail investors and the bid amount will be finalised soon after consultation with the book running lead managers, the prospectus said. The shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). 

PNB Housing Finance, in which Punjab National Bank holds 51 percent stake, earned net profit of Rs. 326 crore on total income of Rs. 2,697 crore for the financial year 2015-16, according to a statement issued in May

Assets under management rose 59 percent to Rs. 27,555 crore as on March 31, 2016, as against Rs. 17,297 crore in the previous financial year. Gross non-performing assets (NPAs) and net NPAs stood at 0.22 percent and 0.14 percent, respectively.

Kotak Mahindra Capital Company Limited, DSP Merrill Lynch Limited, JM Financial Institutional Securities Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited are the global coordinators and book running lead managers to the issue.

Highlights of the issue (according to the draft prospectus):

The maximum bid amount under the Employees Reservation Portion by an Eligible Employee cannot exceed  Rs. 2 lakh. 

The company will reserve 5 percent of the QIB category (excluding anchor investors) for mutual funds on a proportionate basis.

PNB Housing Finance is the fifth largest housing finance company in India.

As of March 31, 2016, housing loans to self-employed customers constituted 23.76 percent of the company's total loan portfolio.

The company's business is skewed towards northern parts of India. It is heavily dependent on economic conditions and real estate values in Delhi, Punjab, Haryana, Rajasthan, Uttar Pradesh and Chandigarh. Its operations constituted 40.40 percent of its total loan portfolio as of March 31, 2016.

The post-issue holding of PNB will come down to 35-37 percent from 51 percent at present.

As of March 31, 2016, the company had foreign currency borrowings amounting to $100 million.

Also read