The Rs 3,000 crore initial public offer (IPO) of PNB Housing Finance opens on Tuesday in a price band of Rs 750 – 775. The company intends to utilise the IPO proceeds to augment its capital base in order to meet there future capital requirements.
Public sector lender Punjab National Bank (PNB) has 51% stake in PNB Housing Finance, which will drop to around 35% post the IPO. At the upper end of the price band, the PE ratio is 28.10 times to its FY2016 earnings, higher than the industry PE of 25.98.
According to reports, the Rs 3,000 crore PNB Housing Finance IPO will be the second largest thus far in terms of amount raised in calendar year 2016, only after private life insurer ICICI Prudential Life Insurance that raised over Rs 6,000 crore earlier this year.
So, should you invest in the IPO? This is what leading brokerages and research houses across the country suggest:
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