PNB Housing slides 8% after nearly 5% equity changes hands via block deals

At 09:15 am; around 12.25 million equity shares representing 4.72 per cent of total equity of PNB Housing Finance have changed hands on the BSE, the exchange data shows.

Shares of PNB Housing Finance slipped 8 per cent to Rs 724.55 on the BSE in Wednesday’s intra-day trade after nearly 5 per cent of total equity of housing finance company (HFC) changing hands via block deals.

At 09:15 am; around 12.25 million equity shares representing 4.72 per cent of total equity of PNB Housing Finance changed hands on the BSE, the exchange data shows. However, the names of the buyers and sellers are not ascertained immediately.

According to reports, Asia Opportunities V (Mauritius) and General Atlantic Singapore Fund FII are likely the sellers.

As on March 31, 2024, Asia Opportunities V held 9.88 per cent and General Atlantic Singapore Fund held 9.82 per cent holding in the company, the shareholding pattern data showed.

At 09:54 am; the stock was trading 6.4 per cent lower at Rs 737.95, as compared to 0.45 per cent decline in the S&P BSE Sensex.

Meanwhile, with today’s fall, the stock price of PNB Housing Finance has corrected 21 per cent from its 52-week high level of Rs 913.95 touched on January 25, 2024.

PNB Housing was set up in 1988, as a deposit taking HFC registered with the National Housing Bank (NHB), and promoted by PNB. In December 2009, PNB sold 49 per cent stake in PNB Housing and entered into a strategic partnership with Destimoney Enterprises Pvt Ltd (owned by NSR Partners). During fiscal 2017, Destimoney Enterprises Ltd transferred equity shares in PNB Housing to its holding company i.e. Quality Investments Holdings (part of the Carlyle group) pursuant to in specific distribution of its assets as per winding up scheme.

Subsequently, in April 2023, with the successful completion of the rights issue, Carlyle group became the largest shareholder with 32.7 per cent shareholding as on March 31, 2024 and PNB’s shareholding has reduced to 28.2 per cent with the remaining shareholding being held by large domestic and foreign institutional investors.

PNB Housing Finance’s assets under management (AUMs) grew by 7 per cent in fiscal 2024 to Rs 71,243 crore as on March 31, 2024, from Rs 66,617 crore a year earlier (Rs 66,983 crore as on March 31, 2022). Loan assets grew by 10 per cent to Rs 65,358 crore in fiscal 2024 from Rs 59,273 crore in fiscal 2023. This is after reporting a degrowth in AUM in fiscals 2020 to 2023, as the management had slowed down disbursement and encouraged accelerated prepayments.

Disbursements have also gained momentum at Rs 17,583 crore in fiscal 2024; highest since fiscal 2019. The AUM growth in fiscal 2024 was driven by 10 per cent growth in retail book while the corporate book continues to run down (3 per cent of the overall AUM as on March 31, 2024). Going forward, retail loans will remain the key growth driver.

CRISIL Ratings believes the company will continue to maintain its comfortable leverage and should also be able to improve its earnings profile and maintain healthy asset quality while scaling up operations.