PNB Housing Finance Ltd IPO Message Board (Page 62)

1 point to think just my POV
Should a company dilute so much in one go 30% in this Case for future growth especially for finance co??? Lots of avenues to raise money in future when need arises.here company raising more than its networth.what''s so much hurry to raise for 3 years of growth capital even @50% cagr loan book growth.

May be it means more than what meets the eyes.

If this issue comes at Rs800 it is avoid why would a company with NAV 170 ask Rs 800 is beyond me IMO the price should be close to 550 to 600 not 800

If it comes at price of Rs. 800 then I will avoid this. I will consider HDFC or Gruh Finance as alternative.

DHFL CHEAPEST STOCK AVAILABLE AT 2 TIMES P/BV BUY IT AND AVOID PNB IPO IF AT RS 800

At current price DHFL is not best stock. It has it''s own governance issues. It offers 9.10 to 9.20 percent to NCD holders. It is very high. Housing loan offered at around 9.50 to 9.65. After all it will decrease profitability.

what is post ipo book value and ronw ratio ?

@800 issue price

Do consider other return ratio:-
Forward PE 29
RONW just 9%
Non housing loan 28.5% of total loan book which is risky
Loan to developer is 21% of total loan book
( super risky)....repco canfin almost zero gruh only 4%
Cost to income ratio 30% ...grun repco n canfin 18-20% HDFC just 10%.....it shows operatioal inefficiencies
RoA 1.3% ....can fin 1.6 repco 2.2 gruh2.4 hdfc2.6
Lastly NHB inspection in 2015 found lots of issues including NPA recognition n overstatement of net owned funds, liquidity issues etc.

Considering all these negative points apart from many positives which already highlighted ....800 is highly expensive IMO

775... FINAL

My decision also final not to apply

Stop all calculations and wait for Issue Price, someone told retail will get shares at 550. So at this price it is good

775 final price .. same price for Retail

Eagleye,
I am not considering book value for any analysis in banking or finance sector. Book value is calculated by total properties value divided by no. of shares. In banking and finance companies get funding by fixed deposits, ncds etc. That is not considered as company properties and it is not coming in bv calculations. Companies getting fund by deposits, ncds etc and lend money to customers.
It may be possible company is old and initial fund by owners is very less so no. Of shares are very less. This way bv comes high.

Let''s go with some other scenario, if company lend 100 crore and borrower became defaulter after some time. With lots of pressure borrower pay 5 crore so he is not in defaulter list and amount is not considered as NPA. But banks needs to get 95 crore. These all calculations not coming in bv calculations. Company get money from investors as deposit or ncd and company lend money to customer. No. of share are remains same. You can see BV of uco bank and Allahabad bank. BV is much higher than current price.

Another scenario company gave loan of 1 crore and customer is not paying money. Customer is asking my property value is 80 lakh now. Who will take 20 lakh loss? Company never takes this amount on his books. Company always show we lend 1 crore on books. This was actually happened in subprime crisis in USA in 2008.

In short don''t go with bv for finance and banking sector.

I am not applying at Rs. 775. It is risky. I will see listing and then think.

Thank for your view sir...........

your follower...

going with eagle eye''s calculation of post issue book value, the calculation and comparison with pre and post is as follows (assumption: company will maintain its RONW and dividend payout ratio)

PRE ISSUE
BV=169
EPS=27.58 (16.32%)
DIV=3.4 (12.32% of EPS)

POST ISSUE
BV=322
EPS=52.55 (16.32%)
DIV=6.5 (12.32% of EPS)

Fair Value as per my valuation matrix comes to Rs 784.5

So its a buy and hold

The issue will now be coming in nov as per ET report.No one can know or guess the ipo price range.why r we discussing on the totally unknown issue ad it foes not add any value.Similarly guessing the listing price of Any ipo is also a useless discussion as it depends upon many factors.
Let us wait for the listing day and see the price

Please check. Post issue due to increase in equity, EPS will go down not up

Please Help!!!






If the Book Value = 322

Then what is the fair value ?

what P/BV does this stock deserve?

Discussion is going bit disoriented. Many HFCs who have same P/BV ratio if PNB comes > 600. PNB coming at more than 600 is bit stretching it too far, There was a nice peer analysis of PNB Housing vs others which showed its high growth, which i saw but cannot recall now. 500-600 range is ok,

eagle eye how much price endurance will list should we buy on current level

PNB Housing Finance IPO

As per DRHP, we know:
Outstanding Shares pre IPO = 126,923,000 equity Shares
NAV as on 31st March 2016 = Rs.168.96
NetWorth as on 31st March 2016 = Rs.2,144Crs.


Assuming PAT for FY16-17 = Rs.450Crs.
NetWorth as on 31st March 2017 = Rs.2,594Crs.
NAV as on 31st March 2017 = Rs.204.41


Now, add IPO proceeds

Assuming,
Issue Size = Rs.2,500Crs.
Issue Price = Rs.800/-
Fresh Shares issued in IPO = 3,12,50,000 equity Shares

Therefore Post IPO:
Outstanding Shares = 126,923,000+3,12,50,000 = 15,81,73,000 equity Shares
NetWorth as on 31st March 2017 = Rs.2,594Crs.+ Rs.2,500Crs. = Rs.5,094Crs.
NAV as on 31st March 2017 = Rs.322.05





Inviting Comments from CAs and other Market experts

My bad. They can increase/decrease issue size by 20%

Thx Jonam Bhai

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Meri ma Keahti haai betai IPO me paiso ni lagavicho.... Wife boli ipo mai paiso lagaaaaoooo.... Confuse MA ki manoooo biwi ki manonooooo please help ji....

Wife jitne paise lagane ko bolti hai, uske half lagana. Now first of all ask your wife how much she wants to invest.,

If you want to go per my advise don''t invest into IPO, pick up Tech mahindra will give you at least 25% in near future. Keep my words!

Pnb 700

Any one want to sell application of pnb please reply in Ahmadabad only rate 850 per application

Now Mr. Chirag is Mr. India

Gayab from last 24 hrs.

No reply.

I want in 850 and your price is 950 sirji

PNBHF/ Issue O/C - 25th/27th Oct.; Issue Size - 2500 cr. ; Price band - 550 to 565; Discount to Retailers - Rs. 15; Listing - BSE & NSE; Min app size - 25

Confirmed.....?

Source of info pl?

as i am smart i said from earlier to apply pnb housing if ipo at 425

PNB 700 IN JAIPUT

PRISE BAND DECLARED??? ANY PORTION FOR SHAREHOLDER??

Big IPO if pricing is high it may be another ICICI pro.
retailers careful.