PNB Housing Finance stock rises 4% on nod to raise Rs 2,500 crore

Shares of PNB Housing Finance rose 4% today after the firm's board approved a proposal for raising funds up to an amount of Rs 2,500 crore by way of issue of equity shares on rights issue basis.

The stock touched an intraday high of Rs 437, rising 3.96 % against previous close of Rs 420.35 on BSE. Market cap of the firm rose to Rs 7,150 crore on BSE. Total 0.26 lakh shares changed hands amounting to turnover of Rs 1.10 crore on BSE.

Market cap of the firm rose to Rs 8,837 crore on BSE. PNB Housing stock trades higher than 5 day and 20 day moving averages but lower than 50-day, 100-day and 200-day moving averages.

The share has gained 0.2% in one year and lost 14.31% since the beginning of this year.

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"For the purposes of giving effect to the rights issue, the detailed terms in relation to the rights issue, including but not limiting to the issue price, rights entitlement ratio, record date, timing and terms of payment will be determined in due course," the NBFC said in a regulatory filing.

PNB Housing Finance had decided to offload a part of its stake to a group of investors led by private equity firm Carlyle in May.

However, it was mired in a controversy regarding the valuation of shares being offered to the investors. Subsequently, the matter reached the Securities Appellate Tribunal (SAT) after the intervention of markets regulator SEBI.

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In October 2021, the company cancelled the proposal of raising Rs 4,000 crore due to the legal battle. PNB Housing reported a 19 per cent fall in net profit at Rs 188 crore in Q3, mainly on fall in core income as disbursements slipped.

The firm reported a net profit of Rs 232 crore in the same period a year ago. Total income fell 26.8 per cent at Rs 1,495.61 crore, against Rs 1,896.35 crore in the corresponding quarter of 2020-21. The net interest income (NII) stood at Rs 439 crore compared to Rs 590 crore, registering a decline of 26 per cent.

Shares of PNB Housing Finance closed flat at Rs 417.35 on Wednesday.