PNB Housing Finance To Consider Raising Rs.2,500 Crore Via NCDs

PNB Housing Finance, backed by Punjab National Bank, offers retail customers housing and non-housing loans, including individual home loans, loan against property, non-resident property loan, among others. The company has recently announced that on September 9, 2024, the company’s Board of Directors will  consider a plan to issue Non-Convertible Debentures (NCDs) worth up to Rs.2,500 crore. These NCDs will be rolled out through private placement, split into multiple sections over the next six months.

PNB Housing Finance is doing this to boost its capital base and support key corporate activities, like expansion projects and working capital needs. By doing so, the company has plans to better its financial flexibility and strengthen its overall stance amid evolving business dynamics.

Financial Snapshot & Other Changes 

Lately, PNB Housing Finance has seen a flurry of major stake sales by notable investors such as The Carlyle Group, General Atlantic Singapore, and Asia Opportunities V (Mauritius). These transactions have reshuffled the company’s shareholding picture, making the upcoming financial events even more interesting.

In its last fiscal report, PNB Housing Finance posted a 25% rise in net profit, reaching Rs.433 crore which was fueled by a slight uptick in home loans. The company’s gross non-performing assets (GNPA) saw a dramatic drop from 3.76% to 1.35%, and net NPA also improved, falling from 2.59% to 0.92%. Disbursements surged 19% year-over-year to Rs.4,398 crore, with retail disbursements constituting a whopping 99% of this total.

Market Trends & Outlook

As of yesterday, PNB Housing Finance shares ended the day at Rs.1,055.50 on the BSE, up around 5% from the previous close and today, its shares are trading at Rs.1075.65 per share, 2.17% up from closing. The stock has had a stellar performance over the past year, climbing around 60%, and 36% year-to-date. 

Conclusion: All in all, the upcoming NCD plan could be a game-changer for PNB Housing Finance, especially after its stake sales and solid financials. With the stock on a steady rise and the company gearing up for the future, all eyes are on the Board’s next move.

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.