PNB HFL Share – Should you invest in IPO ?

By Suresh KP 

PNB HFL IPO Review - Should you invest?
 Delhi based, PNB HFL IPO would open for subscription on 25th October, 2016.
PNB HFL offers housing loans to individuals and corporates. Its revenues grown by 5.8 times in last 5 years. It earned profits over 12% last year. It is growing at 55% CAGR in last  5 years.

Issue Details

Issue date

Issue opens 25-Oct-16
Issue closes 27-Oct-16

Issue details
Price band (Rs.) 700-750
FV (Rs.) 10
Fresh issue (mn. shares)* 165.5
OFS (mn. shares) nil
Issue size @ Rs750 ( 30.0

Offer reservation (of net issue) (%)
QIB 50%
Non-institutional Not less than 15%
Retail Not less than 35%

Key Operating Metrics (FY16)
EPS (Rs.) 25.7
BVPS (Rs.) 169.1
RoE (%) 17.5
RoA (%) 1.3
CAR (%) 12.7
CAR (Tier 1) (%) 9.0
GNPAs (%) 0.2
PCR (%) 36.2

Pre and post-issue networth calculations
FY16 Paid-up equity (Rs mn) 1,269
O/s shares (mn) 127
Issue price (Rs) 750
Fresh issue of shares (mn) 40
Fresh equity to be raised (Rs mn) 30,000
Post-issue paid-up capital (Rs mn)* 1,669
Post-issue o/s shares (mn) 167
FY16 networth (Rs mn) 20,190
Post-issue networth (Rs mn) 50,190
FY16 ABVPS (Rs) 166
Post-issue ABVPS (Rs) 298
Post-issue P/ABV (x) 2.5
Source: Company, IDBI Capital Research
*At upper price band


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