INSUBCONTINENT EXCLUSIVE:
MUMBAI: Private-equity majors and large home financiers, including Warburg Pincus, Dewan Housing Finance, the Godrejs and General Atlantic,
are among the 20-odd bidders in the race to acquire a large stake in PNB Housing Finance.
A source close to the development said that “so
far”, 20 companies have submitted their responses to the ‘expression of interest’ exercise for the home financier
“Investors may come in a consortium as it is a very large cheque,” another source told ET.
Non-binding bids will be submitted by August
A shortlisting will follow and then the bidders will submit binding bids
The entire process will be over by December.
Varde Capital, Kedara Capital, Multiples, Advent Capital, Apax, GIC Singapore, CPPIB, Bain
Capital, Blackstone, TrueNorth, and Premji Invest are among the other investors to have submitted their response to the ‘expression of
Furthermore, Kotak Mahindra Bank and bandhan Bank are also in the fray.
Promoters Punjab National Bank and Carlyle, which together own about
66per cent of the company, are looking to sell their stake to a large investor
The new buyer will have to bring in close to Rupee15,000 crore for the stake on offer
The listed mortgage lender has a market capitalisation of Rupee 22,972 crore.
Carlyle has appointed Morgan Stanley as its adviser to the
deal, while Punjab National Bank is being assisted by Credit Suisse.
PNB Housing Finance has been increasing disbursements at a 52per cent
compound annual growth rate (CAGR) over the last four years
The company had assets under management of Rupee62,252 crore at the end of March 31, 2018
Its net non-performing loans were at 0.25per cent of the total.
PNB Housing Finance has 84 branches across the north, south and west
Mortgages account for 70per cent of the business.
Having listed in November 2016 after a Rupee3,000-crore initial public offer, PNB Housing
Finance has seen its market value almost double since its stockmarket debut
Carlyle invested Rs 1,600 crore in February 2015 for a 49per cent stake in the then unlisted company
It now owns a 33per cent stake, having recently sold about 5per cent in the open market.
