PNB Housing Sees ₹2,642 Crore Block Deal as Carlyle Sells Stake

On July 30, shares of PNB Housing Finance valued at ₹2,642 crore were sold via a block deal on the exchanges, with the private equity firm Carlyle Group's Quality Investment Holdings PCC likely being the seller.

Following this transaction, PNB Housing Finance share price dropped 2% to ₹779.30 on the NSE. Approximately 3.40 crore shares, constituting a 13.1% stake in the company, were traded at an average price of ₹778 each. This deal price represented over a 2% discount from the stock's previous closing price of ₹794.90.

Although the involved parties were not immediately identified, CNBV-TV18 had earlier reported that Carlyle Group intended to sell up to a 12.8% stake in the lender, targeting ₹2,511 crore from the sale.

Motilal Oswal Investment Advisors Ltd and IIFL Securities acted as the book-running brokers for this transaction, according to the report.

Additionally, the report mentioned that this stake sale would trigger a 90-day lock-in period for any further share sales by Carlyle Group.

As per the company's June quarter shareholding data, Carlyle Group held a 32.68% stake in PNB Housing Finance through its affiliate Quality Investment Holdings PCC.

In May, two other major stakeholders, Asia Opportunities V (Mauritius) Fund and General Atlantic Singapore Fund, had sold a combined 2.68% stake in PNB Housing Finance.

PNB Housing Finance recently reported its April-June earnings, with a 25% year-on-year increase in net profit to ₹433 crore. The company's gross non-performing assets (GNPA) decreased by 241 basis points to 1.35% from 3.76% the previous year, and net NPA fell to 0.92% from 2.59%.

Disbursements grew 19% year-on-year to ₹4,398 crore, with retail disbursements accounting for 99%, and the emerging markets and affordable segment contributing 33% of retail disbursements during the quarter.

The lender’s net interest income rose 4% year-on-year to ₹651 crore. Meanwhile, the net interest margin remained steady at 3.65% compared to the previous quarter, though it was lower than the 3.86% margin from the same period last year.

PNB Housing Finance Limited, incorporated in 1988 and based in New Delhi, India, operates as a housing finance company. It offers loans for the purchase, construction, repair, and upgradation of houses/flats/commercial properties to individuals and corporate bodies; residential plot loans and loans for NRIs; loans against property, lease rental discounting, and loans for real estate developers; as well as home loans and fixed deposit products.