PNB Housing Finance shares jump 3% on share sell reports

NEW DELHI: Shares of PNB Housing Finance climbed nearly 3 per cent in morning trade on Tuesday amid reports that the company is looking to sell shares for the first time since its listing in 2016.

ET reported that PNB Housing Finance is looking to sell shares as the mortgage lender seeks to raise fresh equity capital to support growth.

The company, which Care Ratings has placed on credit watch, may be looking to raise Rs 1,800-2,000 crore this fiscal year from investors who are showing renewed interest in the nation's growing housing finance market, the report quoted sources saying so.

The company is expected to place this proposal before its board in the last week of May. This will not be on the agenda at the May 9 meeting where the board will consider raising $1 billion in external commercial borrowing (ECB) and Rs 10,000 crore in non-convertible debentures, besides taking its financial results on record, the report added.

Shares of PNB Housing Finance traded 1.85 per cent up at Rs 705.95 on BSE around 10 pm.