Its shares surged as much as 16 per cent to Rs 902.8 compared to its issue price of Rs 775.
The initial public offer (IPO) of PNB Housing Finance, which ended on October 27, was subscribed 29.55 times.
The portion set aside for qualified institutional buyers (QIBs) was subscribed 37.33 times while the non-institutional investor quota received an 86.17 times subscription. The quota for retail investors was oversubscribed 1.35 times.
Analysts say its attractive valuation compared to its peers and growth prospects for the mortgage lending market in India bodes well for the stock.
PNB Housing Finance offers home loans (61 per cent of loan book), loan against property (18 per cent), builder loan (13 per cent) and loans for non-residential premises (8 per cent).
Its higher average ticket size of Rs 32 lakh (compared to Rs 22 lakh for HDFC, Rs 21 lakh for LIC Housing and Rs 11 lakh for DHFL) and loan to value (LTV) of 66 per cent has contributed to its rapid growth over past 4 years
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