PNB Housing Fin stock drops 8% after QIH likely sells stake

On November 13, a big block deal saw about 2.5 crore shares—or around 9.5% of PNB Housing Finance—changing hands. The seller was likely Quality Investment Holdings, and the shares were priced at ₹943 each, making the deal worth a hefty ₹2,300 crore.

By the end of the day, PNB Housing Finance's stock closed at ₹987.40 on the BSE, rising by ₹21.40, or about 2.2%.

This large trade shook up the market a bit, with the stock dropping 7% in the morning to a low of ₹908.15, though it later recovered. Trading volumes also surged, with around three crore shares traded, significantly above the usual daily average of 16 lakh shares.

While the specific parties involved in the trade weren't immediately confirmed, CNBC-TV18 previously reported that Quality Investment Holdings was looking to sell its 9.43% stake in the company, aiming to raise about ₹2,301 crore.

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The deal came at a 4.25% discount from the previous day’s closing price on the NSE. Morgan Stanley was brought in to oversee the transaction, and once it’s completed, Quality Investment Holdings—currently holding a 19.87% stake—will be under a 60-day lock-in, meaning they won’t be able to sell more shares during that time.

As for PNB Housing Finance’s latest performance, the company reported a solid 23% increase in net profit for Q2, hitting ₹470 crore. This boost in profit was largely thanks to an improvement in asset quality, with its gross non-performing assets (GNPA) ratio dropping to 1.24% from 1.78% a year ago and down from 1.35% last quarter.

On the earnings side, the company’s net interest income (NII) inched up by 1.2% year-over-year to ₹669 crore, with a 2.7% increase from the previous quarter. Its net interest margin for Q2 was 3.68%, a slight improvement from the prior quarter’s 3.65%, though still below last year’s 3.95%.

PNB Housing Finance was incorporated under the Companies Act of 1956 and commenced its operations on November 11, 1988, as a wholly owned subsidiary of Punjab National Bank (PNB).