PNB Housing Finance Shares Drop Nearly 5% After Major Block Deal
PNB Housing Finance shares plunged by 4.8% to Rs 800 during Thursday's early trading session on BSE, following the sale of a significant block of shares.
Major Stakeholders Sell Off Shares
Asia Opportunities Fund and General Atlantic were the likely sellers in this transaction, offloading a 5.2% stake in PNB Housing Finance through a block deal. Around 1.36 crore shares changed hands, significantly impacting the stock price.
Reports indicate that the floor price was set at Rs 773, which reflects an 8% discount compared to the previous closing price of Rs 840.
Details of the Block Deal
The term sheet revealed that these two funds proposed to sell approximately 1.08 crore shares, which is equivalent to 4.16% of the total equity. Specifically, General Atlantic aimed to sell shares worth Rs 420 crore, and Asia Opportunities V (Mauritius) was expected to offload shares valued at Rs 410 crore. BNP Paribas and UBS Securities acted as the bankers for this transaction.
Previous Transactions and Holdings
Just last month, the US-based General Atlantic and Asia Opportunities V (Mauritius) divested a 4.46% stake for Rs 843 crore through open market transactions.
As of the quarter ending in March 2024:
- Asia Opportunities V (Mauritius) held a 9.88% stake, which translates to 2,56,50,006 shares.
- General Atlantic Singapore Fund FII held a 9.82% stake, amounting to 2,55,04,424 shares of PNB Housing.
Financial Performance
For Q4FY24, PNB Housing Finance reported a 57% year-on-year (YoY) growth in net profit, reaching Rs 439 crore compared to Rs 279 crore in the same period last year. However, the net interest margin decreased slightly to 3.65% from 3.74% in Q4FY23.
In the past six months, PNB Housing Finance shares have gained 3.62%, and in the last two weeks alone, the stock has risen by 9.3%.
This article contains information about the major sell-off of shares in PNB Housing Finance by General Atlantic and Asia Opportunities Fund, detailing the impact of the block deal on the company's stock price and financial performance.
