Last Updated: Saturday, October 22, 2016

IPO Note : ‘SUBSCRIBE’ to PNB Housing Finance (PNBHFL)

IPO Note ‘SUBSCRIBE’ to PNB Housing Finance Limited (PNBHFL)

Image:IPO PNB Housing Finance (PNBHF)_Share_stock_Idea
About PNB Housing Finance (PNBHF)
PNB Housing Finance Limited (housing GNP) is a housing finance company registered with the National Housing Bank (NHB). It was incorporated under the Companies Act, 1956 and commenced operations on November 11, 1988. PNB Housing is a subsidiary of Punjab National Bank (PNB), which holds 51% equity of the Company. The Company has no subsidiaries. 
In December 2009, it entered into a strategic financial partnership with Destimoney Enterprises Private Limited. In February 2015, the majority shareholder of DEPL Destimoney Enterprises Limited transferred all its participation in Quality Investments Holdings, which is owned by Carlyle Group, a global investment company.
read more at PNBHF official site>>>

PNB Housing Finance (PNBHF): Current Scenario 
PNB Housing Finance (PNBHF) in terms of loan portfolio size is the 5th fastest growing housing finance company (HFC) of India. Its loan portfolio grew at a CAGR of 61.8% ~ (3.3x the growth of the industry) of ~ Rs 3,900 Cr in FY12 to ~ Rs 27.170 Cr in FY16. Housing and non housing loans up ~ 70% and ~ 30%, respectively, of its loan portfolio. Retail mortgages represent ~ 87% of housing loans, while the construction financing for developers constitutes the remainder. Non-housing loans include loan against property, local loans, lease discount and business loans, accounting for ~ 61%, ~ 13%, ~ 15% and ~ 11%, respectively. It has the quality of healthy assets as GNPA & NNPA report of FY16 was 0.22% and 0.14% respectively, are the lowest in the industry. Its ratio of capital adequacy for FY16 is ~ 12.7%. It was also the second largest deposit base among the public only after HFC HDFC.
Important Notes;
  • Price Band: Rs.750-775           
  • Issue Opens: 25thOct 2016      
  • Issue Closes: 27th Oct 2016  

Purpose of the issue
Company intends to use the net proceeds from the IPO to increase its capital base in order to meet future capital requirements. This fund awareness improves its current capital adequacy ratio of 12.68%. In accordance with the regulatory requirement, Tier I and II capital HFC put together should not be less than 12%. Moreover, part of the capital raised would also be used to expansion of the distribution network.
IIFL point of view

The loan book PNBHF increased to 61.8% CAGR over FY12-FY16. However, IIFL expects the growth momentum to continue, but at a moderate pace. Going before, its scalable business model, the quality of assets of higher quality, lower borrowing cost and operating on medium term leverage advantage will help improve its ROA. At the upper end of the issue price ranges, i.e. Rs.775, the stock is available in a pre-issuance P / BV multiple of 4.6x and post-issuance P / BVX 2.5x on FY16 book value. IIFL believes that the assessment requested by the company justified given the strong growth prospects. IIFL recommends a‘SUBSCRIBE’ to the issue.

See other Expert's View on PNB Housing Finance (PNBHF) IPO;

PNB housing finance IPO price, PNB housing finance ltd share price, PNB housing finance IPO date PNB housing finance share price, PNB housing finance IPO price band, PNB housing IPO date, PNB housing finance market cap, pnb housing finance interest rates, pnb housing finance FD, pnbhfl pnb housing finance reviews, PNBHF multibagger, 10 Baggers stock, IPO for multi fold return.

No comments:

Post a Comment