PNB Housing Finance IPO subscribed 0.2 times on Day 1

The Rs 3,000 crore initial public offering (IPO) of PNB Housing Finance was subscribed 0.2 times on the first day of the three day offering as 55.6 lakh bids were received against 2.8 crore shares on offer. The issue saw a positive response from the institutional investors on day one as the portion was subscribed 0.35 times. Institutions bid for 27.8 lakh shares against 79.5 lakh shares on offer.

On the other hand the non institutional investor book was subscribed 0.08 times as 4.6 lakh bids were received against 59.6 lakh shares reserved for the category. The retail book was subscribed 0.17 times as individual investors bid for 23.2 lakh shares against 1.4 crore shareson offer. The price band for the issue is Rs 750- 775, Kotak Investment banking, BoFA Merrill Lynch, JM Financial, JP Morgan and Morgan Stanley are the book running lead managers for the issue.

PNB Housing Financeraised Rs 900 crore by allotting shares to anchor investors in a pre-IPO placement on Monday. PNB Housing Finance is the fifth largest home loan providerin India and is a subsidiary of state owned Punjab National Bank (PNB). US based private equity fund Carlyle Holding owns 49 per cent stake in the housingfinance company.

According to Sanjay Gupta, MD, PNB Housing Finance, the IPO will result in 23 per cent dilution from the existing share holders including a 12 per cent dilution from Carlyle.