Repco unit launches IPO with price band of Rs 165-172 per share
Repco Home Finance (Repco), which is a wholly owned subsidiary of Repco bank, has launched its initial public offering (IPO) with a price band of Rs 165-172 per share.
The Chennai-based home financing company is offering about 15.7 million shares through the issue and is aiming to use the capital used to change its capital structure and for future credit growth. The company is sourcing its funds form the National Housing Bank (NHB) and other banks but is looking at other options such as public deposits and non-convertible debentures (NCDs).
Repco Home Finance generally offers home financing options to self-employed in south India. The company has 68 branches across Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Maharashtra, Gujarat, Orissa and Puducherry. The home financing firm was established in the year 2000 in Chennai.
The company has said strong presence in smaller cities and is in a good position to strengthen its position with the help of an experienced management. The company is facing stiff competition from banks and other home financiers in the market. The company focuses on self-employed, non-salaried borrowers in the South Indian region.
Its non-performing assets ratio has increased from 0.95 per cent in the financial year 2011 to 1.60 per cent as on September 30th, 2012.