PNB Housing Finance shares rise 6% on stake sale proposal

PNB Housing Finance shares rise 6% on stake sale proposal

New Delhi: Shares of PNB Housing Finance Ltd surged 6.47% to Rs 1,269.05, its highest in over six weeks, after the company on Tuesday disclosed that parent Punjab National Bank (PNB) and US private equity investor the Carlyle Group are planning to sell at least 51% stake in the mortgage lender. At 10.30am, PNB Housing Finance shares were up 5.92% to Rs 1,262.50 per share, while the Sensex rose 0.26% to 36,334.58.

The PNB Housing Finance stock posted its biggest intraday percent rise since 25 June, but is down 11% this year as of last close. However, PNB shares fell 0.58% to Rs 77.45 per shares on BSE at 10.30am.

PNB Housing Finance shares rise 6% on stake sale proposal

“We hereby inform you regarding joint communication received today from Punjab National Bank and Quality Investment Holdings (Carlyle Group) regarding sale of minimum 51% stake in PNB Housing Finance Ltd to the potential acquirers. As on date, Punjab National Bank owns 32.79% and Quality Investment Holdings owns 32.36% of the paid-up equity share capital of the company,” PNB Housing Finance said in a stock exchange filing on 10 July.

Going by PNB Housing Finance’s market capitalization of Rs 19,957 crore on Tuesday, PNB will receive a little over ₹6,500 crore from selling the entire stake in PNB Housing. PNB Housing Finance shares rose 2.07% to Rs 1,191.9 on Tuesday.

PNB Housing went public in October 2016 in a Rs 3,000 crore initial public offering in which the company sold shares to public market investors at Rs 775 apiece.

The proposed stake sale in PNB Housing Finance comes at a time when the state-run Punjab National Bank is coping with the fallout of the ₹14,356.84 crore fraud involving fraudulent transactions by jewellers Nirav Modi and Mehul Choksi, who are being investigated by multiple probe agencies.

source: livemint