PNB Housing Finance has received capital markets regulator Securities and Exchange Board of India’s (Sebi's) approval to raise Rs 2,500 crore through an initial public offering (IPO). The leading housing finance firm had filed IPO papers with Sebi in July. The markets regulator issued its final 'observations' on October 6 on the draft offer documents, which is necessary for any company to launch the public offer.
According to the Draft Red Herring Prospectus (DRHP), the company plans to raise up to Rs 2,500 crore through the initial share sale and a portion would be reserved for the employees. The company plans to grow business and loan portfolio by consolidating position in key geographies as well as by expanding into specific target markets such as the affordable housing segment. The global coordinators and book running lead managers for the proposed issue are Kotak Investment Banking, BofA Merrill Lynch, JM Financial, J P Morgan and Morgan Stanley.
PNB Housing Finance Limited (PNBHFL) is a 27 years old public sector housing finance company. It is a subsidiary of Punjab National Bank and is registered with state owned bank and regulation authority of India - National Housing Bank (NHB). The company provides housing loans & loan against property as a part of its product portfolio and also holds the license to accept public deposits.
