PNB Housing Finance to consider raising Rs 3,500 crore via NCDs; shares gain

Shares of PNB Housing Finance gained 0.5 percent on November 17. The housing finance company is set to consider raising Rs 3,500 crore via NCDs.

In a regulatory filing, PNB Housing Finance said that the board of directors are scheduled to meet on November 24 to consider and approve the issuance of NCDs up to Rs 3,500 crore on a private placement basis, in tranches over the next six months.

As of 9.20 am, shares of the housing financer were trading at Rs 779.9, higher/lower by 0.49 percent on the NSE.

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In an interview with CNBC-TV18 earlier this month, the MD and CEO Girish Kousgi said that the company should reach the Rs 1,000 crore mark by the end of the third quarter. As of September, the company recorded a book close of Rs 750 crore, but this quarter, it is expected to touch Rs 1,000 crore and by March 2024, the business is likely to clock in at Rs 2,000 crore.

Kousgi added that the ratio between prime retail lending and affordable housing will be maintained at 60:40. The corporate book will remain under 10 percent.

Stock price and shareholding

Over the past six months, shares of PNB Housing Finance surged 66.52 percent. In comparison, the benchmark index Nifty 50 rose 8.71 percent.

The counter is trading above all its key moving averages, indicating bullish momentum. The stock has very low volatility, as indicated by its one-year beta of 0.42. The RSI is mid-range, which means the counter is neither overbought nor oversold.

The promoter, Punjab National Bank, mildly decreased its holding in the quarter ended September to 28.1 percent, down 10 bps from the previous quarter.

The number of FII investors increased from 128 to 133 in September quarter, subsequently increasing holdings to 24.81 percent. DIIs held 7.7 percent, while the public owned 39.3 percent in the firm.

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