Share of PNB Housing Finance has delivered more than 60 per cent returns to its shareholders in the last one week after the firm's board approved a proposal to raise up to Rs 4,000 crore by issuing equity shares and convertible warrants to entities led by PE firm Carlyle Group and Aditya Puri's Salisbury Investments.
As per the share price history, PNB Housing Finance stock on BSE closed at Rs 423.05 on May 26, 2021. It hit an intraday high of Rs 630.20 in today's morning session. In a week, the stock has delivered 63.8 per cent returns.
The stock opened 10 per cent higher at Rs 630.20 against the previous close of Rs 630.20. Market cap of the firm rose to Rs 11,664.35 crore on BSE.The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. It has gained 274 per cent in the last 12 months and risen 90 per cent since the beginning of this year.
The board has approved a preferential allotment on a private placement basis, an aggregate of 8,20,51,281 equity shares and 2,05,12,820 warrants exchangeable into equity shares at a price of Rs 390 per share warrant to Pluto Investments, Salisbury Investments, General Atlantic Singapore Fund FII Pte Ltd and Alpha Investments V Pte. Ltd in specified proportions for cash consideration aggregating to approximately Rs 4,000 crore, the company said.
PNB Housing Finance added Pluto Investments, an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P. (together Carlyle) has agreed to invest up to Rs 3,185 crore through a preferential allotment of equity shares and warrants at a price of Rs 390 per share.
Existing shareholders of the Company, funds managed by Ares SSG and General Atlantic, are also participating in the capital raise. PNB will continue to be the Promoter and a key stakeholder in the Company.
The company mentioned that the key objective of raising capital is to augment capital adequacy, reduce gearing and accelerate growth with a focus on retail housing including self-employed and affordable housing loans such as the Unnati segment.
"This fundraise, and Carlyle's continued support, puts us in a strong position to benefit from the growing opportunities in the housing finance sector including in the affordable housing loans and self-employed segments, where we have developed differentiated capabilities in terms of distribution, underwriting and customer service," said Hardayal Prasad, Managing Director and CEO of PNB Housing Finance.
"The current fundraise and planned strengthening of the Board and management team will enable us to accelerate our strategic priorities, including further expanding our footprint, driving the company's digitalization, improving our operating model and customer engagement," added Prasad.
For FY21, the net profit grew 44 per cent to Rs 930 crore while income declined 10 per cent to Rs 7,624 crore.
The company reported a net Profit of Rs 127.03 crore for the quarter ended March 2021 compared to a loss of Rs. 242.06 crore in March 2020.
Net Sales stood at Rs 1,831.68 crore in March 2021 down 5.9 per cent from Rs 1,946.44 crore in March 2020.
ICICI Securities believes that strengthening of the Board, management, governance, and risk management, coupled with scarcity premium, can drive rerating to 1.2x FY23E book.
PNB Housing Finance Limited is promoted by Punjab National Bank and is a registered Housing Finance Company with National Housing Bank (NHB). The Company offers housing and non-housing loans to its retail customers.
It is also into construction finance loans to real estate developers for residential housing.
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