PNB Housing Finance rights issue worth ₹2,500 crore gets Sebi’s approval
PNB Housing Finance has received capital markets regulator Securities and Exchange Board of India’s (SEBI) approval to raise up to ₹2,500 crore through rights issue of shares. The housing finance firm had filed draft papers with Sebi in December 2022 regarding the rights issue.
In March 2022, PNB Housing Finance’s board approved the ₹2,500-crore rights issuance and in November last year, the board cleared the draft letter offer that was to be filed with the Sebi.
It obtained its ‘observations’ on March 6, 2023, which is necessary for any company to launch the issue, an update the markets regulator showed on Monday, reported PTI. PNB Housing will issue fully paid-up equity shares of the company by way of a rights issue to its existing shareholders for an amount not exceeding ₹2,500 crore. The company intends to utilise the net proceeds from the issue towards augmenting its capital base.
Post the rights issue, the shareholding of Punjab National Bank (PNB) as a promoter of the company would come down from the current level of 32.53 per cent to below 30 per cent but it would be higher than 26 per cent so that the bank retains promoter status.
For the quarter ended December 2022 (Q3), PNB Housing Finance reported 43% jump in net profit at ₹269 crore whereas its net interest income jumped 67% to ₹734 crore during the quarter. The mainstay retail loan book inched up by 6.6% to ₹53,123 crore. Overall asset quality improved with gross bad loan ratio coming down to 4.87% from 6.06% and net NPA ratio remaining flat at 3.22%.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.