Chennai-based Repco Home Finance, a housing finance company promoted by government-owned Repco Bank, is planning to hit the capital market to raise up to Rs.270.04 crore for business expansion.
The company is planning to issue 15,720,262 equity shares of Rs.10 each through a 100 percent book-building process. The price band has been fixed between Rs.165 and Rs.172 apiece. The IPO will open on March 13 and close on March 15.
Post issue, the promoter’s holding will come down to 75 percent.
Repco Finance Managing Director R. Varadarajan said, “We are focusing on tier-II and tier-III centres for growth and our strategy will be the same for the coming years. Tier-II and tier-III markets are attractive as they are largely under-served by banks and housing finance companies. There is no offer for sale. We will be issuing fresh shares.”
Repco Home Finance plans to grow 30 percent year-on-year for the next three years.
Repco’s capital adequacy ratio is high at 15.94 percent. Its outstanding loan portfolio has grown at a compounded annual growth rate of 43.81 percent in the past four years to reach Rs.2,802 crore as of March 2012, while its net non-performing asset ratio stood at 1.60 percent as of September 2012. The firm had reported a net profit of Rs.35.60 crore at the end of the September quarter.
Private equity firm Carlyle Group held 23.75 percent stake in the company at the time of filing the issue documents.
SBI Capital Markets, IDFC Capital, and JM Financial Institutional Securities are the merchant bankers (intermediaries involved in helping the company raise money from the public) to the issue.
by RTT Staff Writer
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