PNB Housing Finance shares rose on June 19 after the firm revealed its second fundraising strategy in less than three months. The stock was trading at Rs 577 on the NSE at 9:20 a.m., up 1.2 percent from the previous close.
The board of directors of the home finance company will meet on 22 June to evaluate a plan to fund Rs 5000 crore through a private issue of non-convertible debentures (NCDs).
Earlier in March, the board of PNB Housing Finance approved a rights offer of approximately 9.06 lakh shares for Rs 275 per share to raise to Rs 2,500 crore. The appropriate entitlement ratio was 29:54, which meant that 29 equity shares were distributed for every 54 units held by an eligible equity stockholder on the record date.
Market participants say the corporation is aggressively raising funds to fulfill the increased demand for house loans. The Reserve Bank of India has declared two rate hike pauses for the time being, and with cutbacks anticipated to begin in December, house loans are going to get more affordable.
The fundraising plans follow the company's settlement with the Securities and Exchange Board of India (SEBI) in July 2022. It was over suspected regulation violations in the issuance of preferential securities to the US-based Carlyle Group.
PNB Housing Finance reported an overall net profit of Rs 279 crore in Q4 FY23, a 64.7 percent increase from Rs 170 crore in the same period last year. The company's net interest income for the January-March quarter was Rs 627 crore, up 27 percent from Rs 494.7 crore in the previous year.
The company's gross non-performing assets (GNPA) were 3.83 percent as of March 31, 2023, down from 8.13 percent on March 31, 2022, and 4.87 percent on December 31, 2022.
While the retail portion of the corporation is growing steadily, the corporate component has slowed dramatically due to large nonperforming assets. In an interview with CNBC-TV18, management stated that it intends to relaunch the corporate company by the end of the year.
