PNB Housing board approves raising up to Rs 2,500 cr via rights issue

PNB Housing Finance on Wednesday said that its board has approved the proposal for raising funds up to an amount of Rs 2,500 crore by way of issue of equity shares on rights issue basis.

"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 sell a part of its stake to a group of investors led by private equity firm Carlyle in May.

Soon after, it was mired in a controversy with regard to 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.

In October last year, the company nixed the proposal of raising Rs 4,000 crore due to the legal battle.

Meanwhile, PNB Housing had reported a 19 per cent decline in net profit at Rs 188 crore for the quarter ended December 2021, mainly on fall in core income as disbursements slipped. The non-banking finance company, promoted by state-owned Punjab National Bank (PNB), had reported a net profit of Rs 232 crore in the same period a year ago.

Total income during October-December period of 2021-22 stood at Rs 1,495.61 crore, down by 26.8 per cent from Rs 1,896.35 crore in same quarter of 2020-21, PNB Housing Finance said in a regulatory filing. 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 almost flat at Rs 417.35 apiece on BSE on Wednesday.