PNB Housing sees Rs 2,642 crore block deal as Carlyle likely unloads stake

PNB Housing Finance

PNB Housing Finance shares worth a total of Rs 2,642 crore were sold through a block deal on the exchanges on July 30, with private equity firm Carlyle Group's Quality Investment Holdings PCC being the likely seller.

As much as 3.40 crore shares, representing a 13.1 percent stake in the housing finance company changed hands on the exchanges at an average price of Rs 778 apiece. The floor price of the deal marked an over two percent discount from the stock's previous closing price of Rs 794.90.

While the parties involved in the transaction could not be immediately, CNBV-TV18 reported earlier today that Carlyle Group was eyeing the sale of upto 12.8 percent stake in the lender, aiming to bag Rs 2,511 crore from the divestment.

Motilal Oswal Investment Advisors Ltd and IIFL Securities were acting as the book-running brokers for the transaction, the report added.

Meanwhile, the report also stated that the stake sale will unlock a 90-day lock-in period on any further sale of shares by the Carlyle Group.

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The Carlyle Group held a 32.68 percent stake in the housing finance lender through its affiliate Quality Investment Holdings PCC as per the company's June quarter shareholding data.

Following the block deal, shares of PNB Housing Finance dropped 2 percent to Rs 779.30 on the NSE.

Back in May, two other major stakeholders of the company - Asia Opportunities V (Mauritius) Fund and General Atlantic Singapore Fund had offloaded a cumulative 2.68 percent stake in PNB Housing Finance.

PNB Housing Finance also reported its April-June earnings last week, which saw its net profit jump 25 percent on year to Rs 433 crore. Its gross non-performing assets (GNPA) declined by 241 basis points to 1.35 percent from 3.76 percent last year, and net NPA dropped to 0.92 percent from 2.59 percent.

Disbursement grew 19 percent on-year to Rs 4,398 crore, with retail disbursement making up 99 percent, and the emerging markets and affordable segment, contributing 33 percent of retail disbursements in the quarter.

The lender’s net interest income also rose 4 percent on-year to Rs 651 crore. Meanwhile, net interest margin remained steady at 3.65 percent against the previous quarter and lower than 3.86 percent in the year-ago period.

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