PNB Housing Finance to raise Rs 10,000 crore, check stock reaction

PNB Housing Finance plans to raise up to ₹10,000 crore through the issuance of non-convertible debentures (NCDs). The board has recommended this proposal, which will be presented to shareholders at the upcoming annual general meeting for approval.

However, the NBFC stock was trading on a flat note at Rs 1082.95 in the afternoon session today against the previous close of Rs  1084.05 on BSE.  Market cap of the firm stood at Rs 28,171 crore. 

Total 4305 shares of the NBFC changed hands amounting to turnover of Rs 46.51 lakh on BSE.

PNB Housing stock is trading lower than 5 day, 20 day but higfher than the 10 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The share has gained 35.60% in one year and risen 91.20% in two years.

The NCDs are set to be issued privately in one or more tranches, pending regulatory approvals. This strategic move aims to strengthen the company's financial position and support its growth initiatives.

In the fourth quarter ending March 31, 2025, PNB Housing Finance's net interest income rose 19.2% from the previous year. The company's net profit rose 28% to ₹567.1 crore, supported by a provision write-back of ₹64.85 crore compared to a prior expense. The firm's assets under management also surpassed ₹80,000 crores, marking a 13% year-on-year growth. These financial improvements were accompanied by a slight dip in the company's shares, which closed at ₹1,086.30, down 1.55% on the BSE.

Improved asset quality was another highlight for PNB Housing Finance, with gross non-performing assets (NPAs) reducing to 1.08% from 1.19% in the previous quarter, and net NPAs decreasing to 0.69% from 0.8%. Analysts consider the firm's shares a 'consensus buy' due to these positive developments, with expectations of a 17% upside, according to UBS. Carlyle Group, a significant stakeholder, has also declared its intention to divest a 10.44% stake via block deals, reflecting strategic shifts within the company.

Meanwhile, PNB Housing's strategic focus on improving income and asset management continues to bolster investor confidence, despite short-term share price fluctuations. This move to raise capital through NCDs could further enhance the company's capacity to manage its growing asset base effectively. The anticipated capital infusion is expected to provide the necessary resources for future expansion and operational efficiency.