PNB Housing rises after board approves QIP

PNB Housing Finance rose 0.50% to Rs 339.95 after the company said its board approved raising upto Rs 1,700 crore via qualified institutions placements (QIP).

Further, the board also considered offering Quality Investment Holdings (QIH) a preferential allotment of equity shares and/or permissible securities (including convertible securities/ warrants) of the company. QIH is not obligated to subscribe in the preferential issue at this stage. Should it choose to participate, QIH can subscribe to at least such number of agreed securities in the preferential issue as required to maintain its pre-QIP shareholding in the company. The announcement was made during trading hours today, 3 March 2020.

As on 31 December 2019, Punjab National Bank held 32.65% while QIH held 32.22% in PNB Housing Finance.

Shares of PNB Housing Finance dropped 14.57% in the past three trading sessions to settle at Rs 338.25 yesterday, 2 March 2020, from its close of Rs 395.95 on 26 February 2020.

PNB Housing Finance's consolidated net profit tanked 21.8% to Rs 237.02 crore on a 0.2% slip in total income to Rs 2,074.79 crore in Q3 December 2019 over Q3 December 2018.

PNB Housing Finance (PNBHFL) provides housing loans to individuals and corporate bodies for construction, purchase, and repair and up gradation of houses. It also provides loans for commercial space, loan against property and loan for purchase of residential plots.

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