The PNB Housing Finance stock rose in afternoon trade today after the unit of public sector lender Punjab National Bank announced it raised Rs 2,450 crore by selling its commercial papers (CP).

The stock rose up to 12.79% to hit an intra day high of 824.75 level on the BSE. At 3:10 pm, the stock was trading 10.50% higher at 808 level on the BSE. The stock has been gaining for the last three days and has risen 14.13% in the period. It has lost 40.27% since the beginning of this year and 43.89% during the last one year.

The news came as a fresh breath of air for the embattled housing finance and non-banking finance companies facing liquidity concerns triggered by debt defaults by IL&FS.

Stocks of Dewan Housing Finance (8.12%), IndiaBulls Housing Finance (8.32%), Reliance Home Finance (4.06%), Gruh Finance (3.27%), VLS Finance (3.24%), Reliance Capital (2.29%),  Shriram Transport Finance (2.11%) and Repco Home Finance (4.23%) rose after the fund raising announcement.

Earlier this month, PNB Housing Finance had raised Rs 1,775 crore taking the total amount raised via CPs this month to Rs 4,225 crore. The CPs were placed with various mutual funds and banks.

Eight of 13 brokerages rate the stock "buy" or 'outperform', three "hold" and two "underperform" , according to analysts' recommendations tracked by Reuters.

The company provides housing loans to individuals and corporate bodies for construction, purchase, and repair and up gradation of houses. It also provides loans for commercial space, loan against property and loan for purchase of residential plots. It provides home loans, which include home purchase loans, home extension loans, home construction loans, home improvement loans, residential plot loans and loans for non-resident Indians (NRIs).

The BSE mid cap and small cap indices were trading 220 points and 190 points higher in afternoon trade.

Meanwhile, the Sensex and Nifty rose 553 points and 220 points thirty minutes before the market was about to close.