PNB shares end nearly 3% up on subsidiary's IPO plan

Shares of Punjab National Bank ended nearly 3 per cent higher as its subsidiary PNB Housing Finance has approached Sebi for an initial public offer to raise Rs 2,500 crore.
After rising 4.47 per cent to Rs 119 in intra-day trade on BSE, shares of the company finally ended at Rs 116.95, up 2.68 per cent.
At NSE, the stock gained 2.54 per cent to end at Rs 116.85.
On the volume front, 22.50 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.
The leading housing finance firm, promoted by Punjab National Bank, will be using the proceeds from the share sale mainly towards augmenting its capital base and for general corporate purposes.

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 will be reserved for the employees.
At the end of March 2016, PNB had 51 per cent stake in the company. Post-IPO, it will "continue to hold approximately 35-37 per cent of the issued and paid-up share capital", according to the DRHP.