PNB Housing Fin jumps 3% as firm announces capital raising plans

NEW DELHI – Even as benchmark indices crumbled under the pressure of surging crude oil prices, PNB Housing Finance added almost 3 per cent in early trade on Monday as investors cheered fresh efforts to raise capital.

The board of the mortgage lender is scheduled to take a call on raising capital, including through a rights issue after a failed attempt to garner Rs 4,000 crore by selling a stake to Carlyle Group last year.

PNB Housing Finance’s counter climbed to a high of Rs 414.40 as against the previous close of Rs 402.90 on the National Stock Exchange.

Meanwhile, at 9:55 am, the BSE Sensex and the Nifty 50 were trading down 3 per cent and 2.8 per cent, respectively.

In a regulatory filing on Friday, PNB Housing Finance said that a meeting of the Board of Directors of PNB Housing Finance Limited is scheduled to be held on March 9 to consider fund raising options by issue of equity shares through appropriate methods (including rights issue), subject to requisite approvals.

“Pursuant to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended, and the Insider Trading Policy of the Company, the trading window for dealing in the securities of the company is closed from March 5, 2022 to March 11, 2022, for the designated persons.”

According to a PTI report, in May 2021, PNB Housing Finance had decided to sell a part of its stake to a group of investors led by private equity firm Carlyle.

However, the efforts were clouded by controversies regarding the valuation of shares being offered to the investors, PTI’s report said.

Subsequently, the matter reached the Securities Appellate Tribunal (SAT) after the intervention of markets regulator SEBI, the report said, adding that in October last year, the company nixed the proposal of raising Rs 4,000 crore due to the legal battle.

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