PNB Housing Finance shares rise 2% on fundraising plan

Shares of PNB Housing Finance surged up to 2% in morning trade on Monday after its board approved fundraising plan. The housing finance company in an exchange filing says its board has approved the issuance of non-convertible debentures aggregating to the tune of ₹5,000 crore via the issuance of non-convertible debentures (NCDs) on a private placement basis.

“A meeting of the board of directors of the company is scheduled to be held on June 22, 2023, to consider and approve issuance of Non-Convertible Debentures aggregating up to ₹5,000 crore on private placement basis,” said PNB Housing Finance in a BSE filing on Saturday.

Extending previous session gains, shares of PNB Housing Finance opened higher at ₹574 against the previous closing price of ₹569.40 on the BSE. In the first hour of trade so far, the stock gained as much as 2% to ₹581. The stock price is hovering around its 52-week high of ₹582.70 touched on June 13, 2023. The stock is up 121% against its 52-week low of ₹262.89 hit on June 20, 2022.

For the January-March quarter of 2023, the housing finance company reported a consolidated net profit of ₹279 crore, up 64.7% from ₹170 crore in the corresponding period last year. The net-interest income for quarter stood at ₹627 crore as compared to ₹494.7 crore in the year-ago period, registering a growth of 27%.

The revenue from operations rose 14.71% to ₹1,635.71 crore in Q4FY23, as against ₹1,425.83 crore in the same period last year.

On the asset quality front, the gross non-performing assets dropped by 430 basis points to 3.83% as on March 31, 2023, compared to 8.13% in the corresponding quarter last year. The retail GNPA also slipped by 133 bps to 2.57% in the fourth quarter, compared to 3.89% in the year-ago period.

Earlier this month, the Nomination and Remuneration Committee of the Company approved employee stock ownership plan (ESOP III) scheme and Restricted Stock Unit (RSU) Scheme 2020 to raise funds. Under the ESOP scheme, the company will grant 2,86,500 options, representing 2,86,500 equity shares of ₹10 each to its eligible employees under ESOP Scheme III 2022.

Under the RSU scheme, the company intends to grant 67,500 RSUs of ₹10 each, which will be convertible into an equal number of equity shares. 

In April this year, PNB Housing Finance closed its rights issue of up to ₹2,493.76 crore, which was subscribed 1.21 times. 

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)