PNB Housing Finance up 5% as only half the block size changed hands, Carlyle likely seller

Moneycontrol had reported on May 1 citing a termsheet that US private equity firm Carlyle was looking to sell 10.4 per cent stake in the housing finance company to raise up to $308 million.

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Shares of PNB Housing Finance were sharply higher in early trade on May 2 after a block deal saw 1.73 crore shares change hands, following Moneycontrol's report that a large trade could see Carlyle, one of largest shareholders, offload shares.

However, only half of the total block deal size of 2.74 crore shares was traded, reported CNBC-TV18. The volumes so far on PNB Housing are four-times the one-month average.

The indicative price of the block was Rs 960 per share, which was a 5 per cent discount to the Rs 1,010.20/share close on April 30. Moneycontrol had reported on May 1 citing a termsheet that US private equity firm Carlyle was looking to sell 10.4 per cent stake in the housing finance company to raise up to $308 million.

One source confirmed the above and added the seller is Quality Investment Holdings PPC, an affiliate of Carlyle. Another person added that IIFL Capital is the advisor to the proposed block deal. All of them spoke to Moneycontrol on the condition of anonymity.

The management has reported a very strong demand in the mortgage industry, and expects continued growth despite challenges, hoping to achieve a retail loan book of Rs 1 lakh crore by FY27. An increasing competitive intensity from banks has led to some margin pressure for PNB Housing, leading to the lender shifting focus to affordable and emerging segments.

The lender's affordable loan book has crossed Rs 5,000 crore in Q4FY25, with a total of Rs 75,000 crore in loan asset and Rs 80,000 crore in AUM. The affordable and emerging segment accounts for 36% of PNB Housing's retail disbursements, the lender said during Q4FY25 earnings.