Block Deal in PNB Housing Finance: A Look Back at Key Block Deals

Shares of PNB Housing Finance witnessed a significant decline of over 3% on August 22, 2024, following a substantial block deal valued at approximately Rs 715.60 crore. This transaction saw around 81 lakh shares, representing a 3.2% stake in the lender, change hands at a floor price of Rs 873 per share. The deal is believed to have been facilitated by Asia Opportunities V (Mauritius), as reported by Bloomberg earlier in the day. The report indicated that the Mauritius-based entity was looking to offload up to 1.29 crore shares of PNB Housing Finance, with an intention to raise $132 million through the sale.

Asia Opportunities V (Mauritius) and Its Stake in PNB Housing Finance

As of the end of the June quarter in FY25, Asia Opportunities V (Mauritius) held a 5.19% stake in PNB Housing Finance. The recent block deal, which resulted in a 3.2% stake being sold, marks a significant reduction in the entity’s holding in the lender. The move is noteworthy, as block deals of this magnitude often signal strategic shifts or rebalancing within investment portfolios.

General Atlantic Singapore’s Recent Exit

This block deal comes hot on the heels of another significant transaction involving General Atlantic Singapore, which sold its entire 5.1% stake in PNB Housing Finance just a day prior, at an average price of Rs 802.50 per share. General Atlantic Singapore Fund FII Pte Ltd, as per the BSE shareholding pattern, had held this stake at the end of the June quarter. Notably, this was not the first instance of General Atlantic divesting its holdings in the company; in May 2024, the firm had sold 6,379,030 shares at Rs 727.47 per share.

Carlyle Group’s Quality Investment Holdings and Its Divestment Strategy

Earlier in July 2024, Quality Investment Holdings PCC, an entity of the private equity giant Carlyle Group, had also offloaded a significant number of shares in PNB Housing Finance. The sale involved 12,758,060 shares, reflecting Carlyle’s ongoing strategy to reduce its exposure to the housing finance company. Despite these divestments, Quality Investment Holdings still held a substantial 32.68% stake in PNB Housing Finance at the close of the June quarter, as per the company’s shareholding records.

Stock Performance 

Despite the flurry of block deals and significant stake sales by prominent investors, PNB Housing Finance’s stock has shown resilience. The shares have risen by 8.1% in August 2024 alone and have delivered an impressive double-digit gain of 11.5% year-to-date. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.