PNB Housing Finance, a subsidiary of country’s second largest public sector bank Punjab National Bank (PNB) announced its Rs 3,000 crore initial public offer in the price band of Rs 750 to Rs 775 per share of face value of Rs 10.

The company aims to raise Rs 3,000 crore of growth capital by diluting 23.5 per cent stake by issuing approximately 4 crore shares. Post listing PNB Housing Finance’s stake would come down to approximately 38-39 per cent from 51 per cent while private equity investor Carlyle’s stake would come down to 36-37 per cent from 49 per cent. The IPO opens on October 25 and closes on October 27.

In the public issue 50 per cent of the shares are reserved for the qualified institutional buyers, 35 per cent for the retail individual investors and 15 per cent for the high net worth individuals.

The company in consultation with the book running lead managers may allocate up to 60 per cent of QIB category to anchor investors a day before opening of the public issue.

PNB Housing Finance was incorporated in 1988 as a wholly owned subsidiary of PNB, at a time when banks were not allowed to do housing finance business in their own portfolio.

The PNB’s housing finance business picked up steam after New Silk Route invested in the company through Destimoney Enterprises (DEL) in 2009 and acquired 26 per cent of the equity share capital of the company.