Repco Home Finance promoted by Government of India enterprise Repco Bank Ltd will be launching its Rs 270-crore initial public offering at a price band of Rs 165-172 a share by issuing 1.57 crore equity shares at a face value of Rs 10. The issue opens on March 13 and closes on March 15.
The IPO of the National Housing Bank-registered company includes a reservation of 1,80,000 equity shares for subscription by eligible employees at the issue price. The company has decided to offer a discount of Rs 16 on the issue price to eligible employees.
Minimum bid 75
Excluding the employee reservation portion, the issue will constitute 25 per cent of the post issue paid-up capital of the company. Bids can be made for a minimum of 75 equity shares and in multiples of 75 equity shares thereafter. According to SEBI regulations, 50 per cent of the net issue would be available for allocation on a proportionate basis to qualified institutional buyers (QIBs). The company may allocate up to 30 per cent of the QIB portion to anchor investors at their price on a discretionary basis.
The company which is mainly present in South India said it would continue to focus on under-penetrated markets in Tier-II and Tier-III cities and on the non-salaried class clientele. At present, the company is engaged in providing individual housing loans and loans against property.
Tier-II cities
R. Varadarajan, Managing Director, Repco Home Finance, said: “We are bullish on the housing industry given the housing shortage and improvement in policy environment and in Tier-II and Tier-III cities. We would be utilising the IPO proceeds for augmenting our capital base for improvement of our business.”