
General Atlantic, Värde invest $267m in India's PNB
General Atlantic and Värde Partners have invested INR18.5 billion ($267 million) in PNB Housing Finance, the publicly listed mortgage subsidiary of India’s Punjab National Bank (PNB).
The investors will each buy 10.9 million shares in PNB Housing from PNB for INR850 apiece, leaving the bank with 33.1 million shares, or a 19.8% stake. The share price represents a premium to the closing price of INR827 on March 28, the day before the announcement of the sale. The stock opened at INR845.30 on March 29 and closed at INR866.40.
The transaction represents the first commitment to PNB Housing from Värde, which will take a 6.5% stake. General Atlantic has been an investor in the mortgage lender since 2016, when it participated in the company’s INR30 billion IPO as one of 45 anchor investors. As of March 2018, the GP held an 8.5% stake.
The Carlyle Group is also a major backer of PNB Housing, having acquired a 49% stake when it purchased Destimoney Enterprise from New Silk Route Advisors in 2015. Carlyle still held a 37% stake in the company as of March 2018.
PNB Housing was founded in 1988 and claims to be India’s fifth-largest housing finance company by assets, and second largest by deposit book size. It has 84 branches, 21 regional offices, and three zonal offices across the country, and offers a range of products, primarily covering mortgages but including non-home loans and construction finance for real estate developers.
For the year ended March 2018, the company reported INR623 billion in assets under management, up from INR415 billion the year before, with a gross non-performing asset (NPA) ratio of 0.33%. Revenue for the same period grew from INR39 billion to INR55 billion, while net profit rose from INR5.2 billion to INR8.3 billion.
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