PNB Housing Finance falls 3% as offer for sale opens; Punjab National Bank to sell 6% stake

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PNB Housing Finance share price declined 3 percent intraday Tuesday as Punjab National Bank is selling its stake in the company through offer for sale.

The offer for sale issue is opened today for non-retail investors and will remain opened till November 29 for retail as well as non-retail investors.

The bank will sell 99.94 lakh equity shares (representing 6 percent of total paid-up equity capital) through offer for sale and the floor price of offer is fixed at Rs 1,325 per share, implying 4.6 percent discount to Monday's closing price of Rs 1,389.

PNB, which currently holds 38.86 percent stake in PNB Housing Finance, will receive more than Rs 1,300 crore through stake sale.

Earlier this month, PNB Managing Director and Chief Executive Officer Sunil Mehta said the bank has a headroom to sell up to 9 percent stake in the subsidiary.

"PNB has 39 percent stake in PNB Housing Finance and the promoter stake holding will not go down below 30 percent, leaving the bank a headroom to sell stake up to 9 percent," Mehta had said while announcing the second quarter earnings.

The OFS is part of bank's strategy to sell non-core assets.

"We have a large number of non-core assets and we have approval in place to sell a partial stake in some of these non-core assets, may be without diluting our promoters stake into them. One of them is PNB Housing Finance," Mehta had said on November 3.

At 14:15 hours IST, the stock price was quoting at Rs 1,350.00, down Rs 35.00, or 2.53 percent on the BSE.