PNB Housing Finance has received approval from capital markets regulator Securities and Exchange Board of India (SEBI) to raise 2,500 crore through rights issue of shares. The housing finance firm had filed draft papers with SEBI in December 2022 regarding the rights issue.
In March 2022, PNB Housing Financehas been approved by the board of 2,500 crore rights issue and in November last year the board approved the draft letter offer, which was to be filed with SEBI.
It received its ‘observations’ on March 6, 2023, which is necessary for any company to launch an issue, an update from the market regulator showed on Monday, reported PTI. PNB Housing will issue fully paid-up equity shares of the company to its existing shareholders through a rights issue for an amount not exceeding Rs. 2,500 crores. The company intends to utilize the net proceeds from the issue to augment its capital base.
Post the rights issue, the shareholding of Punjab National Bank (PNB) as promoter of the company will come down to below 30 per cent from the current level of 32.53 per cent, but will be above 26 per cent, to keep the bank afloat. Promoter status.
For the quarter ending December 2022 (Q3), PNB Housing Finance reports 43% growth in net profit 269 crore while its net interest income jumped 67% 734 crore during the quarter. Core retail loan book grew by 6.6% 53,123 crores. The overall asset quality improved with the gross bad loan ratio declining from 6.06% to 4.87% and the net NPA ratio remaining stable at 3.22%.
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