IPO: PNB Housing Finance Limited


Company & Business Profile

PNB Housing Finance Limited (“PNBHF”) was incorporated” on November 11, 1988, as “PNB Housing Finance Private Limited” is a wholly owned subsidiary of Punjab National Bank (“PNB”). PNBHF is registered as a Housing Finance Company (“HFC”) with the NHB on July 31, 2001.

PNBHF is the 5th largest HFC in India and fastest growing HFC among the leading HFCs in India as of March 31, 2015. The company offers a range of housing and non-housing loan products to meet the needs of their customers.

Their loan portfolio grew at a CAGR of 61.76% from Rs.3,969.66 Crores as of March 31, 2012 to Rs.27,177.27 Crores as of March 31, 2016. As of June 30, 2016, the loan portfolio had further increased to Rs.30,900.64 Crores. As of March 31, 2016, PNBHF has 47 Branches that were supported by 16 Processing Hubs (which includes 3 co-located zonal offices) and their Central Support Office (“CSO”) in New Delhi.

In December 2009, the company entered into an agreement with PNB and Destimoney Enterprises Limited (“DEL”), pursuant to which DEL acquired 26% of the Equity Share capital of the company. Subsequently, through a series of transactions, DEL subscribed to additional equity shares in the company and increased its stake to 49% of the equity share capital of the company. In February 2015, DEL was sold to Quality Investments Holding, a company incorporated in Mauritius, owned and controlled by CAP IV AIV Mauritius Ltd and CAP IV Coinvest AIV Mauritius Ltd, which has an investment advisory arrangement with affiliates of the Carlyle Group, L.P.

Objects of the Issue 

  • Augment the capital base to meet their future capital requirements.
  • General corporate purpose and
  • Enhance visibility and brand name among existing and potential customers.


The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Apply in IPO now in ASBA mode, to apply call us at 0731-4217261.



Arihant’s Value Plus October 2016 is now available.

Going ahead, Indian equity markets will be highly influenced by government officials and ministers’ comments on geopolitical tensions between India and Pakistan. The Reserve Bank of India’s monetary policy statement on Oct 4 will be keenly watched by investors. Fluctuations in the dollar-rupee exchange rates, macroeconomic events, movement in crude oil prices, foreign fund inflow, upcoming Q2FY17 corporate earnings and US Fed statements for further rate hike are also likely to affect the equity markets. We suggest investors to adopt buy on dips strategy and invest in fundamentally sound companies at lower levels.

This month’s issue contains:

  • Movers & Shakers
  • Market Outlook
  • Fundamental Stock Picks
  • Auto Sector Sep Sales
  • Commodity Outlook
  • Mutual Fund
  • Key Financial Events
  • Systematic Investment Plan

We hope you find this issue of Value Plus useful. Please share your feedback on research@arihantcapital.com.

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Click here to download PDF report.

IPO: Endurance Technologies Limited

endurance-ipoCompany & Business Profile

Incorporated on 27th December 1999, Endurance Technologies Limited (“ETL”) is the largest Two-Wheeler and Three-Wheeler Automotive Component Manufacturer in India in terms of aggregate revenue for FY2015.

ETL manufacture a diverse range of Technology-Intensive Automotive Components for the Two-wheeler and Three-wheeler segments for Indian Market. They also manufacture specified components for Four-Wheeler Passenger Vehicles, Light Commercial Vehicles (“LCVs”) and Heavy Commercial Vehicles (“HCVs”) for European Market. ETL is the number one Aluminium Die-Casting company in India in terms of actual output and installed capacity in FY2016. ETL has 25 plants across India, Italy and Germany. They have 18 manufacturing plants in India, 2 manufacturing plants in Germany and 5 in Italy. 15 of their plants in India are certified as per ISO/TS 16949:2009 standards.

Objects of the Issue:

To achieve the benefits of listing the Equity Shares on the Stock Exchanges and to carry out the Offer for Sale.


The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Apply in IPO now in ASBA mode, to apply call us at 0731-4217261.



Global equity markets are dancing on the tune of US Fed’s comments since long time. In the beginning of this year, the Fed signaled that four rate hikes were likely in 2016, but that was scaled back in March due to a global growth slowdown, financial market volatility and concerns about tepid US inflation.

In September FOMC meeting, the US Federal Reserve left the federal funds rate target range unchanged at 0.25-0.50%, but seemingly prepared the ground for an increase in 2016, saying it had decided to wait “for the time being”.

The US Federal Reserve’s decision to stand pat on interest rates eased concerns of fund flows into emerging markets being hit. The US central bank left interest rates unchanged and decided to wait for further evidence of continued progress in the economy, even as the case for a rate hike has strengthened.

Fed’s latest economic projections signaled that an increase in interest rates was likely in December. However, projections for the next couple of years were lowered, which further boosted sentiment.

The FOMC members’ updated economic projections also signaled that an increase in interest rates was likely in the last quarter of the current calendar year, most likely in December. According to the projections, only three out of the 17 FOMC members expect the target range to remain at 0.25-0.50% by the end of 2016. The median of members’ estimates, however, suggests just the one rate hike of 25 basis points in 2016, down from two in June.

The Fed will next meet on November 1-2, which is being discounted by the markets as a possible rate hike opportunity due to the presidential elections which will be held in the week after the Fed’s meet. The Fed’s last meeting for 2016 is slated for December 13-14.

The median of FOMC members’ expectations of the federal funds rate at the end of 2017 and 2018, too, were lower than the June projections by 50 bps each. The median for longer run interest rate expectations was down at 2.875% as against 3% in June.

Commenting on the economy, the FOMC’s statement said the labour market had continued to strengthen, and the growth of economic activity had “picked up from the modest pace seen in the first half of this year”. Job gains had been “solid, on average”. FOMC expected one rate hike this year if the job market continued to improve and major new risks did not arise.

IPO: HPL Electric and Power Ltd


Company & Business Profile

HPL Electric and Power Limited (“HPL”) is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switchgears, lighting equipment and wires and cables, catering to consumer and institutional customers in the electrical equipment industry.

HPL has the largest market share in the market for electricity energy meters in India in fiscal 2015, with one of the widest portfolios of meters in India and the 5th largest market share for LED Lamps during the corresponding period.

Their manufacturing capabilities are supported by a large sales and distribution network with a pan-India presence. HPL currently manufacture and sell their products under the umbrella brand ‘HPL’, which has been registered in India since 1975.

HPL supply switchgears, lighting equipment and wires and cables through their network of 2,400 authorized dealers or distributors from their warehouses located in 21 States and union territories in India to institutional, non-institutional and corporate customers. HPL also supply their products to power utilities, which primarily includes supply of meters under direct contractual arrangements to electricity boards and power distribution companies, as well as through project contractors.

The sales and marketing activities are managed through over 90 branch offices and representative offices in India as on March 31, 2016.

HPL has a strong focus on upgradation of the technology that is used in their products and the processes used in manufacturing thereof, through their continuing research and development efforts. HPL has established 2 in-house research and development centres, the Kundli R&D Centre and the Gurgaon R&D Centre.

HPL also operate 2 tool rooms at Gurgaon (Haryana) and Kundli (Haryana), within their R&D Centres, where they have in-house component designing and tool designing facilities.  As on March 31, 2016, HPL employed over 97 engineers at their R&D Centres.

HPL currently own and operate 7 manufacturing facilities located across the states of Haryana and Himachal Pradesh, having in-house testing capabilities.

All the manufacturing facilities have accredited with management system certificates for compliance with ISO 9001 requirements. Company’s certain products has certified with various national and international quality standards, including the ISI mark issued by the BIS, the CE mark and KEMA certification for conformity with requisite European quality standards.

Objects of the Issue 

  1. Repayment/prepayment of certain indebtedness.
  2. Funding working capital requirements.
  3. General corporate purposes.

Apply in IPO now in ASBA mode, to apply call us at 0731-4217261.

IPO: ICICI Prudential Life Insurance Company Limited


Company & Business Profile

ICICI Prudential Life Insurance Company Limited, largest private sector life insurer in India by total premium in fiscal 2016 and assets under management at March 31, 2016, is a joint venture between ICICI Bank Limited. India’s largest private sector bank in terms of total assets with an asset base of 7.2 trillion at March 31, 2016, and Prudential Corporation Holdings Limited, a part of the Prudential Group, an international financial services group with GBP 509 billion of assets under management at December 31, 2015. It is one of the first private sector life insurance companies in India and commenced operations in fiscal 2001.

The Company offers the customers a range of life insurance, health insurance and pension products and services. It offers a range of products to cater to the specific needs of customers in different life stages, enabling them to meet their long-term savings and protection needs. It also offers customers access to its products and services through an extensive multi-channel sales network across India, including through the branches of bank partners, individual agents, corporate agents, its employees, offices and its website.

As of June 30, 2016, the Company had 124,155 individual agents. As of July 12, 2016, the bank partners had over 4,500 branches. The Company believes that it is at the forefront of leveraging technology in the Indian life insurance sector, with focus on digitization and transformation of sales, customer on-boarding and internal processes. It also believes that its focus on technology has enriched customer experience and enhanced the productivity of its employees and distributors.

Objects of the Issue 

  • To achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges.
  • To carry out the sale of up to 181,341,058 Equity Shares by ICICI Bank Limited (the “Promoter Selling Shareholder”).
  • To enhance the “ICICI Prudential” brand name and provide liquidity to the existing shareholders.
  • To provide a public market for the Company’s equity shares in India.
  • The Company will not receive any proceeds from the Offer.

Apply in IPO now in ASBA mode, to apply call us at 0731-4217261.