PNB Housing Finance - Capital Infusion Brings Notable Triggers: ICICI Securities

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ICICI Securities Report

PNB Housing Finance Ltd.’s board approval for preferential issue reduces the overhang on much awaited equity infusion and/or stake sale.

It also brings with it a few notable positive triggers:

1. Carlyle raising its stake to 50% and the company’s stake to be down to 20% (not expected to go below this), putting to rest the overhang of any further stake sale in the interim.

2. Mr. Aditya Puri’s nomination to the board will lend considerable credence to the company’s business transition and strategic intentions.

3. Capital buffer is enhanced to adequately face the potential stress due to Covid-19 disruption, and gradually improve visibility on rating upgrade.

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