PNB Housing surges 8% after block deal; this shareholder exits company

Till 09:32 AM, as many as 12.27 million equity shares, representing 4.72 per cent of the total equity of PNB Housing Finance, had changed hands on the BSE and NSE

Share price of PNB Housing Finance today

  PNB Housing Finance share price hit a seven-month high of ₹1,087.95 today, as it rallied 8 per cent on the BSE in Friday's intraday amid heavy volumes, after a huge block deal was executed on the counter.

 

Till 09:32 AM, as many as 12.27 million equity shares, representing 4.72 per cent of the total equity of PNB Housing Finance, had changed hands cumulatively on the BSE (9.97 million shares) and the NSE (2.3 million shares).

 

The stock price of the housing finance company was trading at its highest level since September 2024. It had hit a 52-week high of ₹1,201.45 on September 13, 2024. With this, share price of PNB Housing Finance has bounced back 44 per cent from its March low of ₹753, hit on the BSE.  READ STOCK MARKET  LIVE UPDATES TODAY HERE

 

 

Carlyle Group is the likely seller in block deal

 

According to reports, Carlyle Group likely offloaded its entire stake in PNB Housing Finance today.  the private equity player was looking to divest its remaining 10.44 per cent stake in PNB Housing Finance through a block trade worth $308 million (₹2,604 crore) today, according to a term sheet issued by IIFL Capital.

 

The sale was to be executed via Quality Investment Holdings, a Carlyle affiliate, which was looking to offer 27.1 million shares. The floor price had been set at ₹960 per share, representing a 5 per cent discount to PNB Housing's April 30 closing price of ₹1,010.20 on the NSE. The transaction is entirely secondary and will be managed by IIFL Capital Services, reports said.

 

Earlier, on November 13, 2024, Quality Investment Holdings PCC had informed that they sold 24.5 million equity shares of the face value of ₹10 each of PNB Housing Finance, representing 9.43 per cent of the total paid-up equity share capital of the company through on-market transaction.  ALSO READ | Adani Ports shares surge 5% after Q4 profit beats estimates; Details here

 

PNB Housing Finance's Q4 results

 

Meanwhile, PNB Housing Finance reported a 25 per cent year-on-year (Y-o-Y) rise in fourth-quarter (Q4FY25) profit to ₹550 crore from ₹439 crore a year earlier.

 

Net interest income (NII) rose 16.2 per cent Y-o-Y to ₹734 crore. Disbursements in the affordable housing segment doubled year-on-year to ₹1,291 crore, while that for the prime segment rose 7 per cent to ₹4,141 crore.

 

Gross non-performing assets stood at 1.08 per cent as on March 31, 2025, compared with 1.19 per cent as on December 31, 2024, and 1.50 per cent as on March 31, 2024. Net non-performing assets stood at 0.69 per cent at the end of Q4FY25. Net non-performing assets in the retail segment stood at 0.70 per cent.

 

Brokerage view - JM Financial Institutional Securities on PNB Housing

 

With recoveries expected to continue from the balance write-off pool (~₹ 1,400 crore), PNB Housing Finance's credit costs are likely to remain low for the near-term. Over the medium term, steady state credit costs are estimated at ~20bps. The brokerage firm believes that strong growth trajectory led by affordable and emerging markets and corporate disbursements, steady branch expansion, and consistent recoveries from its write-off pool while maintaining asset quality would aid in healthy avg. RoA of 2.5 per cent over FY25-27E. Analysts maintain a 'Buy' rating on the stock, valuing the company at 1.4x FY27E BV entailing a target price of ₹ 1,150.  ALSO READ | Is it a good time to buy stocks? Chris Wood of Jefferies answers

 

About PNB Housing Finance

 

PNB Housing Finance (Promoter – Punjab National Bank) offers retail customers housing and non-housing loans, including individual home loans, loan against property, and non-resident property loan. It is an established player with a long track record of operations in the housing finance industry and a presence in 20 states/Union Territories (UTs) in India. It is led by an experienced management team and board with a notable track record and expertise in banking, insurance, retail lending, technology, and economic policy. Over the last few years, the company has focused on the retail segment while reducing its wholesale exposure.