Page 1

PNB Housing Finance and Varun Beverages join IPO squad India's PNB Housing Finance Ltd and Varun Beverages are eyeing to raise more than $630 million jointly from initial public offerings (IPOs) next week, underpinning a surge in first-time share sales in Asia's third-largest economy. In the first nine months of the year, Indian companies have raised $2.9 billion through IPOs, a 171 per cent rise from a year earlier and the best run since 2010, as per data.

PNB Housing Finance Ltd The fifth-largest mortgage lender by assets in India, PNB Housing Finance Ltd, has plans to sell new shares in order to raise up to 30 billion rupees ($450.5 million) in the second largest IPO this year. The sale will commence on Oct. 25 and settle on Oct. 27, according to an announcement on Tuesday. The issue includes a reservation of 2.5 lakh equity shares for subscription by eligible employees, not surpassing 5 per cent of the post-issue paid up equity share capital. Employees may get shares at a discount of Rs 75 per share to the issue price. Equity shares are to be listed on the NSE and BSE. The lender has given the price range of 750 rupees to 775 rupees a share. Indian state-run Punjab National Bank owns 51 per cent of the lender. It will see its holding diluted to around 38 per cent whereas Carlyle Group's holding will dip to about 37 per cent from 49 per cent. Neither Punjab National Bank nor Carlyle will be selling shares in the IPO. Read more about PNB Housing Finance IPO at PNB Housing Finance IPO receives Sebi nod

PNB's share sale will be the second largest this year after private sector life insurer ICICI Prudential Life Insurance Co Ltd raised 60.57 billion rupees last month in the biggest local IPO in six years.

Will this issue help PNB’s financials in any way? Unlikely, as the money raised (more than Rs 2,500 crore according to DRHP) through the issue will flow into the treasury of PNB Housing, as it is a fresh issue of shares. Hence, there will not be any rise in PNB’s capital after the issue. Its tier-1 capital ratio was 8.4 per cent in the financial year 16, among the lowest in the sector. In order to note profitable growth, the bank needs to increase this. Intraday on Wednesday, PNB share price is trading at Rs. 141.85, up by 0.75 per cent. Bankers- Kotak Investment Banking, Bank of America Merrill Lynch, J M Financial, J P Morgan and Morgan Stanley are the global coordinators and book running lead managers (BRLMs) to the issue.

Varun Beverages It one of the largest bottlers for PepsiCo Inc, is eyeing to open an IPO to raise 11.5 billion rupees to 12 billion rupees on Oct. 26. Varun Beverages has kept a price range of Rs 440-445 each for its planned initial public offering (IPO). It has decided to raise between USD 165 million and USD 167 million. Varun Beverages has planned to offer up to 25 million shares, constituting 15 million primary and the rest secondary shares, representing 13.7 per cent of the expanded capital, the terms showed. The company will have a market value of around USD 1.2 billion post the IPO, which will be open for subscription from October 26 to October 28, the terms showed. The shares will start trading on or around November 8. Read more about Varun Beverages IPO at Varun Beverages eyes up to Rs1,400 cr from IPO in October & Pepsico Franchisee, Varun Beverages Got A Nod For IPO

Disclaimer The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision. Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/ his Relative:      

Do not have any financial interest / any actual/beneficial ownership in the subject company. Do not have any other material conflict of interest at the time of publication of the research report Have not received any compensation from the subject company in the past twelve months Have not managed or co-managed public offering of securities for the subject company. Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the subject company, nor engaged in market making activity for the subject company Have not served as an officer, director or employee of the subject company

Article Written by Madhurima Chowdhury

Pnb housing finance and varun beverages ipo  
Read more
Read more
Similar to
Popular now
Just for you